EURUSD Remains Vulnerable Amid US Retail Sales News

The Euro (EUR) inched higher against the US Dollar (USD) on Monday, increasing the price of EURUSD to more than 1.0975. The technical bias, however, remains bearish because of a Lower Low in the recent wave.

Technical Analysis

As of this writing, the pair is being traded near 1.0987. A support can be seen around 1.0952, the horizontal support area ahead of 1.0912, the swing low of the latest major downside move and then 1.0900, the psychological number.

On the upside, the pair is expected to face a hurdle near 1.1110, a major horizontal resistance area ahead of 1.1280, another major horizontal resistance and then 1.1366, the swing high of the latest major upside rally.

US Retail Sales

Household spending and the broader U.S. economy remain on track for decent growth despite growing consumer angst over the heated presidential campaign. Sales at retail stores, online retailers and restaurants rose a seasonally adjusted 0.6% in September from the prior month, matching economists’ expectations for a rebound after sales fell 0.2% in August, the Commerce Department reported Friday. Stronger auto sales and rising gasoline prices boosted the headline figure last month, and spending excluding gas and autos rose a more modest 0.3%, though that was still the best gain in three months.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair on short term rallies still appears to be a good strategy in short to medium term.

How useful was this post?

Click on a star to rate it!

Average rating / 5. Vote count:

No votes so far! Be the first to rate this post.

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Latest posts by Usman Ahmed (see all)
with No Comments 1394
Scroll Up