EUR/USD edges lower after US data, erases daily gains

EUR/USD edged slightly lower, retracing mild daily gains, after data showed US retail sales and import prices rose more than expected in October. 

US retail sales rose a seasonally adjusted 0.8% in October from a month earlier above expectations of a 0.6% increase. Meanwhile, separated data showed import price index rose 0.5% in October, posting the second rise in a row and the seventh gain of the past eight months.

The US dollar strengthened slightly on the back of the data but failed to gather enough momentum and remained well within its previous day’s range. At time of writing, EUR/USD is trading at 1.0730, virtually unchanged on the day.

The pair has been moving lower over the last days as the US dollar was boosted by prospects of fiscal stimulus and faster rate hikes under Trump’s administration.

EUR/USD levels to consider

As for technical levels, next supports are seen at 1.0708/1.0700 (Nov 14 low/psychological level), 1.0550 (Dec 2 2015 low) and 1.0500 (Dec 3 2015 low/psychological level). On the flip side, immediate resistances could be found at 1.0850 (Oct 25 low), 1.0955 (10-day SMA) and 1.1000 (psychological level).

To learn more about this topic, check our video analysis:

EURUSD from Tip TV Productions on Vimeo.