EUR/USD Outlook: Euro falls further after strong US retail sales

Slobodan Drvenica Windsor Brokers

EURUSD

The Euro accelerated lower after Strong US retail sales (May 0.5% vs Apr 0.3%, revised upward from -0.2%) inflated dollar and reduced greatly probability of rate cut on FOMC policy meeting next week.
Fresh weakness surged through Fibo support at 1.1259 (38.2% of 1.1116/1.1347) and cracked 50% retracement at 1.1231, approaching key support zone between 1.1218/04 (converged 20/55/30SMA/daily cloud base/Fibo 61.8% of 1.1116/1.1347). Weaker daily techs on south-heading momentum/stochastic/RSI support scenario, with close below daily cloud base, needed to confirm double-top at 1.1347/43 (7/12 June high).
Bears may face headwinds from 1.1218/04 support zone and reduce the pace, for consolidation before final break lower.
Broken Fibo 38.2% (1.1259) now offers initial resistance, guarding pivotal barriers at 1.1275/79 (broken 100SMA/daily cloud top) which need to stay intact and keep bears in play.

Res: 1.1259; 1.1279; 1.1294; 1.1303
Sup: 1.1218; 1.1204; 1.1170; 1.1160

Interested in EURUSD technicals? Check out the key levels

1. R3 1.1333
2. R2 1.1319
3. R1 1.1297
PP 1.1283
1. S1 1.1261
2. S2 1.1247
3. S3 1.1225

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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