EUR/USD to fall to 1.20 as US data set trigger a fresh rush to the dollar

EUR/USD has been able to stabilize as the market mood improved. Nonetheless, euro bulls may be asking themselves, frustrated from the minor recovery – a classic "dead-cat bounce." According to FXStreet’s Analyst Yohay Elam, US Retail Sales may trigger a downfall to 1.20.

The tables are mostly tilted toward the dollar

“The current calm is likely one coming ahead of a storm – US Retail Sales figures for April are forecast to show another increase in shopping, on which the American economy is centered. While another 9.8% leap is not on the cards, any expansion could reignite the rush toward the dollar.” 

“The focus on the consumer continues with the University of Michigan's preliminary Consumer Sentiment Index data for May. Economists expect another bump up in confidence. More importantly, investors will eye the inflation expectations components of that publication. Any uptick could also boost the greenback.”

“Some support awaits at 1.2075, which was a swing high in early May. It is followed by 1.2055, the weekly trough, and then by 1.2015 and the psychologically significant 1.20.” 

“Some resistance is at the recent high of 1.2110, followed by 1.2150, April's peak, and then by the current month's top line of 1.2180.”