Home EUR/USD Price Extends Range Ahead of US Retail Sales Data

EUR/USD Price Extends Range Ahead of US Retail Sales Data

  • The EUR/USD pair remains under strong downside pressure as the DXY is bullish.
  • Escaping from the current range should bring us new opportunities.
  • The US retail sales data bring sharp movements.

The EUR/USD price continues to move sideways in the short term as the US dollar seems undecided. Though, it has changed little after the US inflation data.

Are you interested to learn more about forex options trading? Check our detailed guide-

The United States reported higher inflation in January versus December. As expected, the CPI m/m rose by 0.5%, while Core CPI registered a 0.4% growth versus the 0.3% growth in the previous reporting period.

In addition, the Consumer Price Index y/y reported a 6.4% growth compared to the 6.2% growth estimated but below the 6.5% growth in the previous reporting period. On the other hand, the Eurozone Flash Employment Change rose by 0.4%, beating the 0.1% growth estimated, while Flash’s GDP surged by 0.1% as expected.

Today, the US data could be decisive. Retail Sales are expected to report a 1.9% growth. Core Retail Sales may report 0.9% growth, while the Empire State Manufacturing Index is expected at -18.2 points. These are seen as high-impact events and could shake the markets.

Moreover, the Capacity Utilization Rate, Industrial Production, and Business Inventories data will also be released. The Eurozone Industrial Production and Trade Balance could bring some action as well.

EUR/USD price technical analysis: Downside pressure

EUR/USD price

Technically, the currency pair is trapped between the 1.0802 and 1.0669 levels. As you can see on the hourly chart, the price registered a false breakout above the former high and through 1.0802, indicating strong downside pressure. Now, it’s almost reached 61.8% (1.0692), which stands as a support level. The 1.0669 represents a critical downside obstacle.

Are you interested to learn about forex robots? Check our detailed guide-  

A new lower low, a valid breakdown below this support activates more declines. It could continue to move sideways in the short term, so only a valid breakout from this range should bring new opportunities.

Looking to trade forex now? Invest at eToro!

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.




Olimpiu Tuns

Olimpiu Tuns

Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms.