- The pair retreats further and tests 1.1670/65, fresh daily lows.
- The greenback clinches session peaks near 94.70 on US data.
- US Retail Sales expanded below estimates 0.1% MoM.
EUR/USD continues to fade the initial spike beyond 1.1700 the figure and is currently navigating daily lows in the 1.1670/65 band.
EUR/USD upside capped near 1.1720
Spot met strong resistance in the 1.1720/25 band earlier in the session, sparking the ongoing correction lower despite US key data once again surprised to the downside.
In fact, US headline Retail Sales expanded at a monthly 0.1% in August, missing previous estimates. Additionally, Core Retail Sales expanded 0.3% MoM, also coming in below consensus.
Further US data saw Industrial Production expanding at a monthly 0.4% and Manufacturing Production gaining 0.2% inter-month during August.
Later in the NA session, the preliminary print of the U-Mich index and Business Inventories will close the calendar for the week.
In the meantime, USD appears to have found some oxygen after Dallas Fed R.Kaplan (centrist, non voter) said the US has legitimate trade issues with China and advocated for gradual tightening by the Fed, while Chicago Fed C.Evans (centrist) sees consumer prices edging a bit above the Fed’s 2% target.
EUR/USD levels to watch
At the moment, the pair is losing 0.22% at 1.1664 facing the next support at 1.1622 (10-day SMA) followed by 1.1611 (21-day SMA) and then 1.1508 (low May 29). ON the upside, breakout of 1.1734 (high Aug.28) would open the door to 1.1745 (high Jul.31) and finally 1.1792 (high Jul.9).
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