EUR/USD: the jobs weekEuro/US DollarFX:EURUSDXBTFXThe previous week was about PCE data in the U.S. The PCE Price Index reached 0,4% in May, which was by 0,1pp lower from market estimates. On a yearly basis the PCE was standing at 3,8%. Core PCE in April was at the level of 0,2% m/m. Personal income was without change on a monthly basis, while Personal spending increased by 0,5% m/m. Durable Goods Orders in April were higher by 7,9% for the month, strongly above market estimates of 3,5% m/m. The second estimate of GDP Growth rate for Q1 was 1,6% q/q, much better from the first estimate of 0,5% q/q, but below market consensus of 2,0% q/q. New Home Sales dropped in April by -6,2% m/m. This week there has not been much important data posted for the Euro Zone and Germany. The economic sentiment in the Euro Zone in May reached 93,5 and was slightly better from forecasted data. The unemployment rate in Germany in May dropped by 0,1pp to the level of 6,3% from previous 6,4%. Inflation rate in Germany preliminary for May was standing at -0,2% m/m and 2,6% y/y, well below market estimates. This week was about inflation data, which showed a relatively calming trend, despite recent high volatility in the price of oil. Also, easing in Treasury yields supported relaxation in the value of the US Dollar. The highest USD value against Euro was at 1,1584, but still the currency pair ended the week higher at the level 1,1682. The week was closed at 1,1666. The RSI took a modest uptrend, closing the week at 49. It is still quite close to the level of 50, which still does not confirm that investors are definitely eyeing the overbought market side. Moving averages of 50 and 200 days are moving quite close toward each other, which might imply a potential cross in the near period. Based on current charts for the week ahead, markets could favor the up-move. The first level to watch will be the short term resistance at 1,17. Charts are showing that resistance at 1,18 have a potential to be tested in the next week or two. What should be paid attention to are jobs data which will be released in the week ahead. There are NFP, JOLTs and Unemployment data which will be released, which might bring back some higher volatility to the market. On the opposite side, just in case that markets turn toward the downside, then the 1,1650 down to 1,16 support line should be watched. Important news to watch during the week ahead are: EUR: Retail Sales in Germany in April, Inflation rate in the Euro Zone flash for May, Producers Price Index in the Euro Zone in April, Retail Sales in the Euro Zone in April, GDP Growth Rate third estimate for Q1 in the Euro Zone, USD: ISM Manufacturing PMI in May, JOTs Job Openings in April, ISM Services PMI in May, Non-farm Payrolls in May, Unemployment rate in May