The Euro (EUR) inched higher against the US Dollar (USD) on Monday, increasing the price of EURUSD to more than 1.0975. The technical bias, however, remains bearish because of a Lower Low in the recent wave.
Technical Analysis
As of this writing, the pair is being traded near 1.0987. A support can be seen around 1.0952, the horizontal support area ahead of 1.0912, the swing low of the latest major downside move and then 1.0900, the psychological number.
On the upside, the pair is expected to face a hurdle near 1.1110, a major horizontal resistance area ahead of 1.1280, another major horizontal resistance and then 1.1366, the swing high of the latest major upside rally.
US Retail Sales
Household spending and the broader U.S. economy remain on track for decent growth despite growing consumer angst over the heated presidential campaign. Sales at retail stores, online retailers and restaurants rose a seasonally adjusted 0.6% in September from the prior month, matching economists’ expectations for a rebound after sales fell 0.2% in August, the Commerce Department reported Friday. Stronger auto sales and rising gasoline prices boosted the headline figure last month, and spending excluding gas and autos rose a more modest 0.3%, though that was still the best gain in three months.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair on short term rallies still appears to be a good strategy in short to medium term.
Trade global forex with the best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT
