EUR/USD recap for 14.05.2018

EUR/USD Daily

Though with no fundamentals for the USD or the Euro Yesterday, the price of the Euro was supported by comments from Francois Villeroy stating that the end of the asset purchases is approaching and that the first hike will come in quarters, not years. Not that it is distinguished as something new as information, his statement is not so different from past rhetoric from ECB that it wants to tighten, even after couple of bumps on the road to economic recovery regarding recent data. As the price opened at 1.19392 it made a little dip to 1.19259 then rise greatly on Mr. Villeroy's verbal intervention and managed to boost the price to 1.9956 for the Euro to rise its head above the 200 Daily moving average. Nevertheless the momentum was extinguished and the prices reversed to red territory, finding a close bellow the 200 moving average at 1.19263. The price was close as well to 1.2000, crawling its way to the psychological level.
With the price ending there as a Inverted Hammer, it may signal that the Bulls have lost their control over the price around the 200 EMA. This casts a shadow on the overall idea for price reversal and passing 1.2000 at least in the near therm. This may be indication that the correction has ended for another move lower to 1.18223 or that the Bulls are taking a break. Bears have successfully placed a trap to the Bulls regarding breaching the 200EMA as the false break is heavy, indicated by the big shadow left by the daily candle.
Later on this week we have final reading of April CPI, which is expected to remain at 1.2% and on Tuesday, Q1 GDP is expected to show at 0.4% rise which should alleviate some of the concerns over damp inflation levels.
Careful on the longs. Economic data will shed further light over the price movement and if the ECB is on the right track of pulling the plug on easing and moving towards hikes.