EUR/USD Reverses Lower After Failing to Break Key Weekly Resistance

Key Facts

The EUR/USD currency pair experienced a notable bearish reversal that gained weight following the price's failure to break through established weekly resistance levels. According to reports, this technical rejection has shifted market sentiment toward a bearish outlook. The downward momentum intensified as the pair struggled to maintain its footing above key supply zones.

This technical weakness aligns with recent macroeconomic data, where Germany's annual CPI held at 2.9% in May 2026, per market data. Conversely, U.S. inflation data released on May 12, 2026, showed the annual Inflation Rate rising to 3.8%, surpassing the 3.7% forecast. This disparity in inflationary pressures has provided a fundamental tailwind for the U.S. Dollar against the Euro.

Looking ahead, investors are focusing on the Fed Goolsbee speech scheduled for later today and the German Wholesale Prices data due on May 13, 2026, for further direction. Following the rejection at weekly resistance, market participants are closely monitoring immediate support levels to determine if the current bearish momentum will lead to a deeper correction in the near term.