EURUSD Plunges Amid US Retail Sales News

FXOpen

The Euro (EUR) extended downside movement against the US Dollar (USD) on Monday, dragging the price of EURUSD to less than 1.1225 following the release of some key economic news. The technical bias remains bullish in the short term because of a Higher High and High Low in the recent wave.

Technical Analysis

As of this writing, the pair is being traded around 1.1221. A support may be seen near 1.1113, the 50% fib level ahead of 1.1050-1.1058, the confluence of psychological number as well as 50% fib level as demonstrated in our daily chart.

1On the upside, the pair is likely to face a hurdle near 1.1252, the 61.8% fib level ahead of 1.1376, the swing high of the last major upside rally and then 1.1400, the psychological number. The technical bias will remain bullish as long as the 1.0710 support area is intact.

US Retail Sales

US retail sales rose modestly for the third straight month in January despite falling gasoline prices, the Commerce Department reported Friday. Shoppers spent 0.2 percent more on retail and food services, following an upwardly revised 0.2 percent increase in December. Retail sales totaled $449.9 billion in January, up 3.4 percent from a year ago, according to the data that is not adjusted for price changes.

The January data showed a 3.1 percent drop in gasoline sales at the pump. Auto sales rose 0.6 percent; ex-auto, retail sales were up a meager 0.1 percent. Sales in general merchandise stores rose 0.8 percent, almost wiping out December’s decline, but department stores saw sales fall 0.8 percent.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term.

 

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Indices

Although UK-100 Index Is Near All-time Highs, UK Economy Slips into Recession

Technically, a national economic recession is defined as two consecutive quarters of contraction, and yesterday's Office for National Statistics data confirmed that this has happened — UK GDP fell in the third and fourth quarters of 2023 by 0.1% and

Cryptocurrencies

DOGE Price Increases by 170% in Less Than 2 Months

On February 1, 2024, the DOGE/USD rate was = 0.0783. On the last Friday of March, it rose to 0.2150. The rising price means Dogecoin is now the eighth-largest cryptocurrency in the world by market capitalization, overtaking Cardano

Commodities

Market Analysis: Gold Price and Crude Oil Price Gain Bullish Momentum

Gold price started a steady increase above the $2,200 resistance level. Crude oil prices are gaining bullish momentum and might rise toward $85.00.

Important Takeaways for Gold and Oil Prices Analysis Today

· Gold price started a decent increase

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.