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.

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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

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.

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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.

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