13 May chart overview for EURUSD and GBPUSD
EURUSD chart analysis
During Asian trading, the euro is still under strong bearish pressure against the dollar, setting its losses at their lowest level since 2016. The political harmonization of the representatives of the EU member states continues with the updated proposal on the introduction of an embargo on oil imports from Russia, which would form a compensation fund for the countries most affected, primarily Hungary and Slovakia. The euro is exchanged for 1.03927 dollars, representing the strengthening of the common European currency by 0.12% since the beginning of trading tonight. At one point, the euro managed to climb to 1.04150 but quickly retreated to a daily support zone of around 1.03700-1.03800. For now, we do not see the formation of a new lower low compared to yesterday’s minimum at 1.03520 levels. If the pressure on the euro continues, then we should see this pair at the 1.03000 level soon. For the bullish option, we need a continuation of this less positive consolidation and a new break above 1.04150 levels. After that, a space of up to 1.05000 levels opens up for us. The next target is the previous high at $ 1.05286, then the 1.05768 level.
GBPUSD chart analysis
During Asian trade, the British pound is trying to consolidate against the dollar, but it is having a hard time. Yesterday, preliminary data on GDP in the UK in April were quite disappointing as recorded a decline in GDP. US price inflation was slightly lower at 8.3% in April but still above expectations, especially given the acceleration in core inflation. The pound is exchanged for 1.22200 dollars, representing the British currency’s strengthening by 0.09% since the beginning of trading tonight. Today we continue the consolidation from yesterday in the range of 1.21700-1.22400. Bearish pressure is still evolving, and we can expect it to continue next week. The first next bearish target and potential support are 1.21500, then 1.21000 level. If the pound continues to weaken, we will probably see this pair at a 1,20000 high psychological level. For the bullish option, we need a jump above 1.22500 levels. With the continuation of the bullish impulse, our next target is the 1.22800 level. An additional resistance at that level is the MA200 moving average. Our following bullish targets are 1.23000, 1.23360 and 1.24000 levels.
Industrial production in the euro area
Eurozone industrial production fell at a slower pace than expected in March, Eurostat data showed on Friday.
Industrial production fell 1.8 % on a monthly basis in March, reversing a 0.5 % rise in February.
Economists forecast a decline of 2.0 %. Production in the capital goods sector fell the most by 2.7 % in March and non-durable consumer goods by 2.3 %. Year on year, industrial production fell 0.8 % in March, up from a 1.7 % recovery in the previous month.