EUR/USD falls further after Eurozone data

FXStreet (Córdoba) - EUR/USD broke below 1.1800 Thursday for first time in more than 9 years and made marginal new lows during the European session following the release of mixed Eurozone data.

Eurozone retail sales rose 0.6% in November following an equal rise the previous month and beating expectations of a 0.1% increase. Meanwhile, producer price index fell 0.3% MoM and 1.6% YoY. Earlier, data showed German factory orders fell sharply in November, printing -2.4% versus -0.7% expected.

EUR/USD is currently trading at the 1.1780 area, recording a 0.49% loss on the day, having printed a fresh 9-year low of 1.1768 so far.

The shared currency remains on a downtrend, posting lower highs and lower lows on daily basis, pressured by growing prospects the European Central Bank could announce a full-blown QE program on Jan 22.

EUR/USD technical levels

As for technical levels, if EUR/USD breaks below 1.1768/67 (Jan 8 low/Dec 8 2005 low) next supports are seen at 1.1705/00 (Dec 7 & 8 2005 lows/psychological level), 1.1688 (Dec 5 2005 low) and 1.1661 (Dec 2 2005 low). On the other hand, resistances could be found at 1.1823 (21-hour SMA), 1.1846 (Jan 8 high) and 1.1895 (Jan 7 high).

Eurozone retail numbers stronger than expected

Eurozone retail sales rose 0.6 percent in November month-on-month, according to EU statistical office Eurostat. Sales were up 1.5 percent year-on-year. The data was stronger than expected, with consensus estimates at 0.2 percent month-on-month and 0.2 percent year-on-year.
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