- It fell until it reached 1.06 and the sellers announced that they were exhausted.
- Fundamentals should be decisive today.
- Taking out 1.0665 activates larger growth.
At the time of writing, the EUR/USD price is trading at 1.0640. The pair looks positive to recoup some of their recent losses. However, the US dollar remains bullish and further growth should stall the euro.
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The currency pair reached a new low today at 1.06023. Downward pressure increased after U.S. retail sales data came in better than expected. The retail sales index reported growth of 0.7% versus the expected 0.4% growth, and core retail sales reported growth of 1.1%, beating the forecast of 0.5% growth.
The euro was helped today by Eurozone ZEW economic sentiment at 43.9 points, above expectations of 37.8 points, and Germany's ZEW economic sentiment rising from 31.7 points to 42.9 points, above expectations of 35.9 points. It became.
Subsequently, Canadian inflation statistics could cause sharp fluctuations in this market as well. The US will also release data on industrial production, capacity utilization, building permits, and housing starts. If economic indicators are bad, the dollar is expected to weaken.
EUR/USD price technical analysis: rebound
From a technical perspective, the EUR/USD price failed to break through the psychological level of 1.06, indicating seller fatigue.
The pair failed to break below the lower median line (lml) of the descending pitchfork and is now above the recent downtrend line, indicating a possible rebound.
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Price action also suggested a bullish divergence. However, the pair is far from bullish territory, so it is too early to talk about a change in trend. I think just taking out the 1.0665 could enable a significantly higher swing.
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