EUR/USD slightly pares gains after failing to capture 1.0900
|- The EUR/USD is testing the 1.0850 neighborhood after Wednesday's action fell to the bearish side.
- The Euro couldn't hold onto Tuesday's rally, falls just short of 1.0900.
- Investors will be turning to US labor data on Thursday, EU inflation on Friday.
The Euro (EUR) couldn't extend its recovery rally against the US Dollar (USD) and saw a slight decline for Wednesday.
Pan-EU Industrial Production came in worse than expected early Wednesday, with the month-on-month figure for September printing at -1.1%, a sharp decline from the previous month's 0.6% and dipping past the forecast -0.7%.
The EUR/USD broadly mixed through Wednesday's trading after the data miss, with Euro traders hesitating on further EUR bids.
The annualized Core (less food & energy) US Producer Price Index (PPI) for October came in at 2.4%, missing the expected steady print of 2.7%.
US Retail Sales drop 0.1% in October
US Retail Sales managed to beat the street's median forecast, printing at -0.1% versus the expected -0.3%, but the headline still fell back from last month's 0.9%, which saw an upside revision from 0.8%.
Up next on Thursday will be US Initial Jobless Claims for the week into November 10th. The median market forecast is expecting a slight uptick in the number of jobless benefits seekers, from 217 thousand to 220 thousand.
EUR/USD Technical Outlook
The Euro's Tuesday rally saw the EUR/USD break through the 200-day Simple Moving Average (SMA) at the 1.0800 handle, but bullish momentum got pulled up short on Wednesday and the pair fell just short of the 1.0900 price level.
With EUR/USD bids at risk of getting drawn back into the long-term moving average, the pair sees technical support from the 50-day SMA currently turning bullish from the 1.0625 level.
The immediate barrier for a bullish extension will be late August's swing towards the 1.0950 handle.
EUR/USD Daily Chart
EUR/USD Technical Levels
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