EUR/USD: 2-day high on poor US data, but more gains at doubt

EUR/USD Current price: 1.1966

Pound's momentum helped the common currency recover ground early Friday, with the EUR/USD pair later extending its advance disappointing US Retail Sales figures. Sales in August came below expected, down by 0.2% from a month earlier,  with July's reading downwardly revised to 0.3% from 0.6%. Sales ex autos were up 0.2% missing market's expectations of 0.5% and down from a revised 0.4%. The US NY Empire state manufacturing index for September came in at 24.4 from the 19.0 expected, but below the 25.2 previous. With some figures still pending of release, being the most relevant the Michigan Consumer sentiment index for September, the EUR/USD holds near a daily high so far of 1.1986.

Despite up for the day, the upside potential remains limited according to technical readings in the 4 hours chart as technical indicators are struggling to extend their advances within positive territory. Anyway, the price is advancing above all of its moving averages, with the 20 and 100 SMAs converging in the 1.1920 region. A downward move below this last should increase the risk of a bearish extension short term, thus a bearish breakout can't be expected for today.

Support levels: 1.1950 1.1920 1.1870

Resistance levels: 1.1990 1.2030 1.2060

View Live Chart for the EUR/USD

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