EUR/USD Forecast: dollar takes a hit from US Retail Sales
|EUR/USD Current price: 1.1603
- US Retail Sales missed, adding pressure on the greenback.
- Wall Street poised to open marginally higher after risk aversion averted.
The EUR/USD pair is up this Monday, after struggling at the beginning of the day, gapping lower at the weekly opening on weekend political headlines hitting European currencies. Asian shares plunged, but the negative sentiment eased after London opening, with EU indexes trading marginally up, as dollar's weakness is boosting base metals. There were no macroeconomic news in Europe, and the US just released September Retail Sales, which came in mixed, but overall disappointing, up by just 0.1% in the month vs. the 0.5% expected. Sales ex-auto resulted at -0.1%, missing the market's forecast of 0.3%, while July reading was downwardly revised to 0.2%. The control group, however, came in better-than-expected at 0.5%. Also, the NY Empire State Manufacturing Index for October was upbeat, printing 21.2 vs. the 20 forecast and the 19 previous.
Currency traders are not happy with the retail sales' outcome, adding to dollar shorts. The EUR/USD pair is at daily highs just above 1.1600, gaining upward traction. In the 4 hours chart, the price not only recovered from a brief intraday dip below a bullish 20 SMA but is now also surpassing the 100 SMA as technical indicators advance within positive territory, although with limited momentum. The pair has its next intraday resistance in the 1.1620 region, with gains beyond it pointing for an extension up to 1.1660.
Support levels: 1.1575 1.1530 1.1500
Resistance levels: 1.1620 1.1660 1.1700
View Live chart for the EUR/USD
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