EUR/USD: data and levels to watch today
By Mark Jensen
EUR/USD keeps consolidating in the $1.3540/00 area. Speaking of this range, resistance looks stronger than support and at this point the single currency looks more vulnerable to the downside.
In terms of economic data, pay attention to the euro zone’s retail sales (10:00 GMT) and US ADP employment report (13:15 GMT). According to the forecasts, European retail sales fell by 0.7% in December after making the biggest increase in 12 years in November. The forecast for American ADP is 191K versus 238K last month. We also have Spanish and Italian service PMIs due around 08:00 GMT, but I don’t think these will be market movers.
Some investors continue to wait until what the ECB says on Thursday to see where the EUR/USD could go.
Analysts at UOB Group say that the lack of rebound despite oversold conditions suggests limited upside risk for now. The specialist see euro capped by $1.3570 and moving down to $1.3475/80, though a sustained break of this area is, in their opinion, for now unlikely.
Chart. Daily EUR/USD