20.05.201916:42 Forex Analysis & Reviews: EURUSD: the positive balance of the eurozone continues to decline

The euro remains in the channel in the absence of important fundamental statistics and before the start of the elections to the European Parliament, which further discourage potential investors and traders.

The report on the reduction of the eurozone current account surplus did not allow the bulls to return to the market and begin the formation of an upward correction.

According to the European Central Bank, the current account surplus of the eurozone balance of payments in March amounted to 25 billion euros against 28 billion euros in February. Let me remind you that in March 2018, the surplus was 33 billion euros. The reduction in the balance is directly related to the slowdown in international trade and trade wars, which the United States unleashed 1.5 years ago. For 12 months, the positive balance in March amounted to 328 billion euros, representing 2.8% of eurozone GDP, against 376 billion euros, about 3.3% of GDP for the same period of the previous year.

Today, the report of the Bundesbank was also published, in which a slowdown in German GDP growth in the 2nd quarter of this year is expected. A number of recent economic indicators clearly underline this. The bank is confident that Germany's GDP will stagnate in the 2nd quarter of 2019 since the negative factors that mainly prevail in the industry can only increase.

The data on the US also did not make an impression on traders. The report of the Federal Reserve Bank of Chicago indicated that the index indicating economic activity declined in April of this year, indicating a slowdown in the economy.

According to the data, the Chicago Fed index in April fell to -0.45 points against 0.05 in March (revised value). Let me remind you that the negative values of the index indicate that GDP is growing at rates below average. The average moving index of national activity for three months fell to -0.22 points.

As for the technical picture of the EURUSD pair, it remained unchanged compared with the morning forecast. Further movement will depend on parliamentary elections. There is support in the area of 1.1135, below which it will be difficult for the bears to break through from the first rose. As for the upward correction, it will be limited by the resistance of 1.1205, where you can count on a return to the market of sellers of the European currency.