Forex: EUR/USD lower ahead of European data

FXstreet.com (Barcelona) - Resistance around 1.2940 keeps the EUR/USD from being unable to even hit that line as Wednesday trading develops. The third upside attempt, now on the European opening, failed at 1.2937 and the pair eases back to its lows. The daily low was printed at 1.2912 by the end of the Asian session.

The main attraction of the European economic calendar is the German CPI report, only due at 13:00 GMT. In the meanwhile, investors will keep an eye on the EMU money supply. The annualized Spanish retail sales improved from -11.0% to -9.7% in October, while consensus was pointing to further contraction to -11.5%.

“We note the TD perfection on the daily chart, which yesterday alerted us to the likelihood of failure and today we note that yesterday's price action also constituted a key day reversal”, wrote analyst Karen Jones, pointing to the 55 day ma at 1.2918 as a near term break down point and below here will alleviate immediate topside pressure for a slide back to 1.2799 the 200 day MA en route to the 1.2661 November peak.

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