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The Euro (EUR) extended upside movement against the US Dollar (USD) on Wednesday, increasing the price of EURUSD to more than 1.1350 ahead of some key economic releases. The technical bias remains bullish due to a Higher High and Higher Low in the recent wave.
Technical Analysis
As of this writing, the pair is being traded around 1.1349. A hurdle may be noted near 1.1378, the high of the bearish pin bar ahead of 1.1465, the high of the last major upside rally as demonstrated in the following daily chart.
On the downside, the pair is likely to find a support around 1.0818, the low of the last major dip ahead of 1.0520, the low of the April 2015. The technical bias will however remain bullish as long as the 1.0818 support area remains intact.
Retail Sales
The US Retail Sales data is scheduled for release tomorrow. According to the average forecast of different economists, the retail sales remained 1.1% in May as compared to 0.0% in the month before. Generally speaking, higher retail sales are considered positive for the economy thus a better than expected actual outcome will be seen as bearish for EURUSD and vice versa. The report will be released by the US Department of Commerce during the early New York session on Thursday.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy if we get another bearish confirmation through a bearish pin bar or bearish engulfing candle. It is always recommended to use proper risk & reward ratios to optimize profitability in the long run.
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