EUR/USD loses triple bottom after strong US retail sales

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The US consumer is alive and kicking despite the expiration of the payrolls tax cut. Both headline and core figures exceeded expectations.EURUSD Breaks Triple bottom on strong US retail sales March 13 2013

The dollar is strengthening on this news and EUR/USD finally broke below the triple bottom of 1.2960, now trading at 1.2933 – updates coming —

US retail sales rose by 1.1%, in February, more than double the early expectations of +0.5%. This came on top of an upwards revision to last month’s figure: +0.2% instead of +0.1%.

Core sales also exceeded expectations by rising +0.4% instead of +0.2%. Also US import prices exceeded expectations rising 1.1% instead of 0.5% that was predicted.  Business inventories rose by 1%,  more than 0.5% that was estimated.

EUR/USD

EUR/USD lost the 1.2960 line, that was guarded successfully for the last time after the Non-Farm Payrolls on Friday. The trough so far was 1.2929. The next support line is 1.2880, followed by 1.2805.

1.2960 switches positions to resistance. For more on the euro, see the EURUSD forecast.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.