EUR/USD Drops to Session Low After EU Retail Sales, Now Eyeing NFP Data
The EUR/USD pair failed to capitalize on its initial minor up-tick and turned negative after monthly retail sales number fell short of consensus estimates.
According to the data released by Eurostat, Euro-zone retail sales for the month of April remained flat as compared to a decline of 0.5% in March and expected growth of 0.4%. On a y-o-y basis, sales recorded a growth of 1.4% vs the expected growth of 2.1%. Monthly and yearly readings for the month of March were also revised lower.
Earlier during the day, mixed services PMI prints from the Euro-zone also failed to provide any respite for the Euro bulls. Moreover, ECB’s warning of downside risk to its economic and inflation projections continued to keep the EUR/USD major suppressed.
Traders now keenly wait for the release of the non-farm payrolls number from the US with a special attention to average hourly earnings growth, which is likely to influence the Fed's monetary policy decision next week.
Technical levels to watch
The pair seems to have stuck within a near-term trading range between 1.1220-1.1100 band and thus becomes immediate resistance and support levels respectively.
A convincing strength above 1.1220 level now seems to open room for an immediate up-move towards reclaiming 1.1300 handle and the move could further get extended towards its next major resistance near 1.1350-60 resistance area.
On the flip side, break below 1.1100 important confluence support would turn the pair vulnerable to further downside in the near-term, towards testing its next major support near 1.0950 region.