EUR/USD (current price: 1.1307)
The Euro fell back to the 1.1300 level during Wall Street hours on Friday, as traders think that a FED rate hike in Juneis possible following the better than expected Retail Sales data. Sales grew by 1.3% in April compared to the expected decline of -0.3%. The pair broke below the rising trend-line support on the news and a move towards the 200-day MA is likely now. The crucial indicator is currently near 1.11 with the 1.1375 and the 1.145 levels providing resistance.
Our assessment: EUR/USD is probably headed lower, but as long as the pair holds above the 1.1210 support a reversal back to the advancing channel is still possible.
