FX.co ★ Technical analysis of EUR/USD for May 20, 2015

TZEW Economic Sentiment for Germany decreased by 11.4 points in May 2015 compared to the previous month. Now, the index stands at 41.9 points. ZEW Economic Sentiment for the eurozone decreased by 3.6 points to 61.2 points. Gaining 11.8 points in May 2015, the current situation index reached the level of -16.5 points in the euro area. The European annual inflation was 0.0% in April 2015, up from -0.1% in March. In April 2014, the inflation growth rate was 0.7%. The European Union's annual inflation growth rate was also 0.0% on April 20.

The US delivered strong data supported the greenback for the second consecutive day as well. Today, the German PPI is due. We expect another negative data at today's session.

Technical view: the near-term top is likely to be at 1.1480 or 1.1535. The pair made a high at 1.1467 fell by 350 pips. At today's Asian session, the euro is trading lower against USD. The pair closed below 10Dsma and 20Dsma yesterday. These factors pumped enough strength to the bears who aim at 1.1050 and 1.0920 5Dsma. The strong support is seen at 1.1120 on a weekly closing basis. Resistance is seen at 1.1175 and 1.1295. The intraday support is found at 1.1090 and 1.1050. The trade favors selling on rises. Today's safe selling will be triggered below 1.1098. A daily close below 1.1050 is likely to provide bears with the complete control.

To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com