- EUR/USD consolidates gains, still unable to hold above 1.1600.
- US dollar drops across the board, losing further momentum after US data.
The EUR/USD pair is consolidating modest daily gains, supported by a decline of the US dollar across the board. During the last hours, the pair has been steady, moving sideways in a range between 1.1575 and 1.1600.
Earlier today peaked at 1.1603, minutes after the release of a mixed US retail sales report. Sales in September rose 0.1% against an increase of 0.5% expected. Core sales contracted by 0.1% and August data was revised lower. The positive came from Control Group sales that climbed 0.5% surpassing expectations of 0.4%. After the data, the GDPNow model estimate for real Q3 GDP growth fell to 4.0% down from 4.2%
The data weakened further the US dollar but the losses were limited. EUR/USD peaked above 1.1600 but failed to hold and pulled back, finding support at 1.1575. The pair seems comfortable in the very short-term, in the current range, consolidating daily gains. The euro found support on Asian hours above 1.1530 and reversed, erasing Friday’s losses and moving close to last week highs, located at 1.1609.
Tomorrow, economic data to be released includes industrial production, jobs data and housing numbers in the US while in the Eurozone, the Italian budget presentation is likely to gain most of the attention.
EUR/USD Levels to watch
To the downside, immediate support is seen at 1.1575, followed by 1.1555 and 1.1530/35 (Oct 12, 15 low). On the upside, resistance levels could be located at 1.1610 (last week high), 1.1625 and 1.1650.
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