EUR/USD (current price: 1.1261)
The Euro fell by 1% against the U.S. Dollar yesterday, following two weeks of very narrow trading in the pair. EUR/USD dropped out of its short-term range following the weaker than expected Retail Sales and PPI data, which were not negative enough to reverse the trend in the pair. Traders will likely focus on the trend-line support at 1.125, and the strong support/resistance zone near 1.11 during the coming sessions. The longer-term outlook remains neutral for the pair.
Our assessment: The pair could re-test the short-term rising trend-line after Wednesday’s decline, with the 200-day MA providing additional support at 1.105.
