EUR/USD Outlook (03 May 2021)

#OPINIONLEADER#

ByJin Dao Tai

 MAY 3, 2021

Overall, EUR/USD is trending upwards. Recently, EUR/USD broke below the key level of 1.21.

The German Preliminary GDP q/q data (Actual: -1.7%, Forecast: -1.5%, Previous: 0.3% revised from 0.1%) released last Friday indicated negative economic growth during the first quarter of 2021.

Also, the eurozone CPI data released indicated an overall increase in annual inflation. Preliminary GDP data shows that the eurozone economy is still in contraction while the unemployment rate data indicated a slight decline in unemployment.

• CPI Flash Estimate y/y (Actual: 1.6%, Forecast: 1.6%, Previous 1.3%)
• Core CPI Flash Estimate y/y (Actual: 0.8%, Forecast: 0.8%, Previous 0.9%)
• Preliminary Flash GDP q/q (Actual: -0.6%, Forecast: -0.8%, Previous: -0.7%)
• Unemployment Rate (Actual: 8.1%, Forecast: 8.3%, Previous: 8.2% revised from 8.3%)

EUR/USD’s next support zone is at 1.19700 and the next resistance zone is at 1.21500. Look for short-term selling opportunities of EUR/USD.