EUR/USD Weekly Forecast - 09 May – 13 May

Events that marked the week:

From Eurozone on Monday, Spanish and Italian Manufacturing PMI data was published. Operating conditions in the Spanish manufacturing sector continued to improve in April as production increased markedly. That said, slower rises in new orders, employment and purchasing activity were recorded. Meanwhile, the rate of input cost deflation slowed sharply and was the weakest in eight months. The seasonally adjusted Markit Spain Purchasing Managers' Index posted 53.5 in April, up fractionally from 53.4 in the previous month and signalling a further solid improvement in the health of the sector. Business conditions have now improved in each of the past 29 months.

EUR/USD Weekly Forecast - 02 May – 06 May

Euro formed support around 1.12 handle in the course of the last week and was then pushed higher, especially in the second part of the week, breaking even above 1.14 handle, and with a weekly closing above this area. Focus of the next week will be on NFP figures, since there will be no major data releases from Eurozone. Pair should find some amount of support around 1.1350 and 1.13 handle in extension, while resistive candles near 1.15 handle should offer short-term selling opportunity.

GBP/USD Weekly Forecast - 02 May – 06 May

Sterling was pushed higher in the course of the last week,continuing its recent uptrend. Pair initially struggled with 1.45 handle, but then broke above it and extended its gains all the way to 1.4670 level, where pair found some amount of resistance and pulled back by the end of the week.  As for next week we would pay attention to UK PMI and NFP figures. Pair is likely to find support around 1.45 handle, at least initially, and resistance above 1.4680 and 1.4730 level in extension, so these would be our short-term buying and selling points.

AUD/USD Weekly Forecast - 02 May – 06 May

After it initially tried to break higher, Aussie pulled back all the way to 0.7550 handle, where pair found some amount of support and managed to rebound by the end of the week, breaking above 0.76 handle. We can expect plenty of volatility next week, with focus on RBA interest rate decision. We believe that area near 0.7750 handle should offer significant amount of resistance, while 0.7550 handle should be supportive, so this is where we would place our short-term buying and selling bids.