EUR/USD Drops Sharply to 1.1300 On Strong US Retail Sales Print
The shared currency remained on back-foot through Friday's trading session, with the EUR/USD pair dropping to session low level of 1.1308 after the release of US economic data.
Data from the US showed retail sales for the month of April rose unexpectedly by 1.3% as against expected decline of 0.3% and a decline of 0.4% recorded in the previous month. Meanwhile, core retail sales, which exclude automobiles, grew by 0.8% as compared to a 0.4% growth in March and 0.6% expected growth. On the other hand, April PPI details fell short of expectations coming-in at 0.2% vs 0.3% expected, but still saw an uptick from -0.1% in March.
Immediately after the release the pair fell sharply to test its immediate support near 1.1300 handle. A follow through selling pressure might now open room for further corrective move for the pair.
Technical levels to watch
On the immediate downside, bulls could make an attempt to defend 1.1300 round figure mark, which if broken sets the stage for extension of the pair's near-term corrective move immediately towards 1.1260 intermediate support before heading back towards April lows support near 1.1220-15 area.
On the upside, 20-day SMA region near 1.1360-70 area now seems to act as immediate resistance. Any bounce beyond this immediate resistance might now be capped near 1.1430-40 area.