After three consecutive sessions, the EUR/USD tried to have a bullish correction but its gains did not exceed the 1.1215 resistance level after last week's losses, which reached the 1.1106 support level, the lowest level since two years. The pair returned to a low of 1.1180 on Tuesday, ahead of GFK's announcement of German consumer confidence and later the announcement of US consumer confidence. The general trend for the EUR/USD remains very bearish and so far there has been no sign of a change in the current trend.
In the European parliamentary elections, more than 200 million voters went to the polls in 28 EU countries, including the United Kingdom. The results were very impressive, with far-right parties across Europe making gains at the expense of the middle parties. In France, the Marin-Le Pen Rally took first place, beating French President Macron. In Germany, the conservatives under Chancellor Angela Merkel lost much, and voters in the UK sent a strong message to the Labor Party and the Conservatives. Nigel Farg's strong supporter of Britain's exit from the EU won the most seats. In turn, Greek Prime Minister Alexis Tsipras called for a general election after his party, Sereza, performed poorly in the EU elections. Therefore, the Euro may face further pressure due to the impact of these results.
According to economic data: German data showed mixed results last week. The Industrial PMI showed a contraction for the fifth month in a row, with a reading of 44.3 in May. The German IFO business climate index fell to 97.9, the lowest level since February 2010. However, GDP improved by 0.4% in the first quarter, compared with no growth in the fourth quarter of 2018. The Industrial Purchasing Managers Index for the Eurozone is also shrinking, with a reading of 47.7. There was better news from the services sector, with the PMI for services in Germany and the Eurozone being above the 50 level that indicates growth.
From the US, durable goods orders for April fell less than expected. Durable goods orders fell by 2.1%, slightly below -2.0%. This was its biggest drop since January 2018. Core durable goods orders fell to 0.0%, down from 0.4% the previous month.
The most important support levels for the EUR/USD today: 1.1155, 1.1080 and 1.0970, respectively.
The most important resistance levels for the EUR/USD today: 1.11230, 1.1300 and 1.1385, respectively.