EUR/USD advances amid profit-taking

Traders took some profits from their USD longs as the EURUSD pair declined to 15-month lows recently, pushing the EURUSD pair slightly higher this week.

The EU calendar is rather empty today, offering only the European trade balance numbers, which don't cause any market movements.

Later in the session, the New York Empire State Manufacturing Index for October will be released, and it is forecast to decrease notably, from 34.3 to 27.

However, investors will focus more on the US retail sales for September. Market participants expect a notable slowdown in retail sales to -0.2% from 0.7% previously, while the ex-autos gauge is seen sliding to 0.5% from 1.8% in August. Weaker numbers could undermine the USD further, but stocks and precious metals might be lifted higher.

Lastly, the Michigan consumer confidence sentiment index is due, likely increasing to 73.1 from 72.8. However, rising prices and the recent stumble in the stock markets could lead to a negative surprise.

The euro is now facing the first strong resistance zone of Fall 2020 lows in the 1.1620 area. If the single currency rises beyond that level, it could target the October 4 highs at 1.1640, with the next strong resistance at 1.1660.

Alternatively, the support is now in the 1.16 region, followed by the current cycle lows at around 1.1530.