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EUR/USD unable to move off lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The euro manged to moved off session lows against the US dollar but the recovery was limited and the intraday outlook continues to favor the downside as price holds below the 20-hour moving average (1.1290) and under a downtrend line.

    EUR/USD
    currently is trading at 1.1240/50, almost 80 pips below yesterday’s closing price. Earlier after the release of the US retail sales report it bottomed at 1.1224, the lowest level since Wednesday’s American session. From the lows bounced to the upside but the recovery lost strength below 1.1280.

    More US data

    The US dollar rose across the board after retail sales numbers and also following the latest round of data including inventory and consumer confidence.

    US consumer confidence measured by the University of Michigan dropped from 92.0 to 90.7 in February. “This is a bit weaker than the 92.3 consensus but isn’t too bad given the scale of equity market sell-off. Indeed, strong employment gains, rising real incomes and a firm housing market are providing enough offsetting effects for now and with retail sales having come in stronger than expected (when upward revisions are included) it looks a reasonably encouraging consumer spending story for now”, said James Knightley, analyst at ING Bank.

    While the US dollar is rising in the market, correcting higher after yesterday’s decline, the euro is showing weakens as stocks recover. In Europe main equity indices are about to post strong gains while in the US, the Dow Jones is up 1.12% and the Nasdaq rises 0.70%.
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