EURUSD Eyes YTD Lows
EURUSD is trading 0.17% lower at 1.1037 amid USD strength across the board. On the data front, Germany Retail Sales (month over month) came in at -2.2% below expectations of -1% in July, the yearly reading increased to 4.4% in July from previous -1.6%. In France Producer Prices (month over month) came up to 0.4% in July from previous -0.5%; the Consumer Price Index (month over month) came in at 0.5% topping expectations of 0.4% in August.
EURUSD trading lower for the fifth day in a row breaking below the previous week low and now approaching the yearly low at 1.1026. Bears are in control as the pair trades below all the major daily moving averages. On the upside, immediate resistance stands at 1.1059 today’s high and then at 1.1189 the 50 day moving average, a break above can lead prices up to 1.1275 the 200 day moving average.
The pair will meet support at 1.1033 the daily low which if breached will encourage more bears to join the action, something that is possible to lead the price towards our next support zone, at 1.1026 YTD lows, before an attempt to 1.10 psychological mark.
Intraday traders might enter a long position if the pair manages to break above the 1.1059 today’s top targeting a break above 1.11. A stop loss at 1.1033 must also be placed for reducing the downside risk as that will signal possibly a move down to 1.10 area.
A short position targeting the YTD low may be initiated if the pair crosses below 1.1033, with a stop-loss order at 1.1059. All in all, bears are in control and if EURUSD breaks below 1.1033 the downward move might accelerate down to 1.1026 yearly low and then at 1.10.