EUR/USD: technical update
Yesterday’s strong US retail sales and unemployment data had worsened the prospects of EUR/USD: the pair slipped to $1.3275 from a three-month high of $1.3390. Buyers tried to recover, but growth remains contained. As of writing, euro is trading around $1.3340 (61.8% Fibo).
MACD divergence is speaking in favor of a further correction to the downside, but we prefer to stand aside as long as the $1.3300 support holds. Next support is seen at $1.3275, $1.3250, $1.3200 and $1.3175. Break above $1.3400 could open the way to $1.3475.
According to analysts at Barclays, yesterday’s slide below $1.3310 signals the formation of a top. They recommend selling the pair with a target of $1.3100.
As for the economic calendar, euro zone will release CPI and employment change at 13:00 GMT. In the US session pay attention to the industrial production figure at to the preliminary UoM consumer sentiment (forecasts are upbeat). Euro is expected to extend the downside in case of the strong US releases.
Chart. H4 EUR/USD