Risk aversion still dominates the financial world, and the dollar resumed its advance, particularly against its European rivals, dragging the EUR/USD pair down to 1.1208, a fresh two-week low. Data coming from the EU was encouraging, as Industrial Production beat expectations in April, up 1.1% monthly basis from previous 0.8% decline, while the YoY figure came in at 2.0%, from previous 0.2%. The news however, was not enough to save the common currency from its steady decline. Ahead of the US opening, the country released its Retail Sales data, which surprised to the upside, up by 0.5% in May and compared with April. The retail sales control grout came in at 04% against the 0.3% advance expected. The numbers, despite positive, are well below previous month´s readings.
Now trading around, 1.1224, the EUR/USD pair retains its bearish tone in the short term, although the price is still unable to confirm a break below the 23.6% retracement of its latest decline, around 1.1215. In the 1 hour chart, the 20 SMA heads south around 1.1270, whilst the technical indicators have turned modestly lower, near oversold territory, in line with further declines. In the 4 hours chart, the 20 SMA also heads sharply lower above the current level, whilst the technical indicators lack directional strength, but remain within negative territory, in line with further declines for today.
Support levels: 1.1210 1.1160 1.1120
Resistance levels: 1.1250 1.1295 1.1340