- The pair rebounds to the 1.2400 handle post-US data.
- US Retail Sales unexpectedly contracted 0.1% MoM in February.
- EUR stays under pressure following Draghi’s dovish comments.
After bottoming out in the 1.2360 region, EUR/USD is now looking to regain the 1.2400 handle and above in the wake of disappointing data releases in the US docket.
EUR/USD bounces off 1.2360
Spot is now seeing some continuation of the rebound from daily lows around 1.2360 after US Retail Sales surprised to the downside today. In fact, headlines sales contracted at a monthly 0.1%, core sales expanded 0.2% MoM and Retail Control rose 0.1% MoM, all coming in below initial estimates.
Additionally, US Producer Prices rose more than expected 0.2% MoM during last month and advanced 2.8% over the last twelve months.
Spot keeps the familiar range in the meantime, facing quite a strong hurdle in the 1.2445/50 band - where sits recent ‘double tops’ – while demand in the shared currency appears cautious in response to earlier comments from ECB’s M.Draghi.
EUR/USD levels to watch
At the moment, the pair is retreating 0.06% at 1.2384 facing the next support at 1.2273 (low Mar.9) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18). On the other hand, a break above 1.2446 (high Mar.8) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.18).
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