- Summary:
- In this EUR/USD signal, we explain why the bearish trend will likely remain in the near term ahead of the EU retail sales and unemployment rate data
The EUR/USD price is in search of direction ahead of the latest EU retail sales and unemployment rate data. It is trading at 1.2055, which is a few pips above yesterday’s low of 1.2042.
EUR/USD news: The EURUSD price reacted mildly to the EU and US services PMI numbers that were released yesterday. The numbers showed that in general, the sector is on a path to recovery though significant challenges remain. The pair also wavered after the relatively weak US jobs numbers.
Today, focus will be on the EU retail sales numbers that will come out at 10:00 GMT. Analysts expect the data to show that the overall retail sales declined by 1.1% in January after rising by 2.0% in December. On an annualised basis, they expect the sales to fall by 1.2% because of the lockdowns that were announced during the month. The unemployment rate is expected to remain unchanged.
Still, these numbers will not have a major impact on these numbers. That’s because the situation in Europe has started to improve as vaccinations go on.
EUR/USD signal
The EURUSD price is trading at 1.2057. On the 2-hour chart, this price is between the first and second support levels of the Andrews Pitchfork tool. The price is also slightly below the 61.8% Fibonacci retracement level and the 15-day and 25-day moving averages. Therefore, in my view, the bearish trend will remain so long as the pair is below the median line of the pitchfork at 1.2130.
EURUSD chart
