EUR/USD's bounce capped at 1.3730

FXStreet (San Francisco) - The Euro's recovery against the US Dollar following the weaker than expected US retail sales was short-lived as the EUR/USD's bounce at 1.3700 was capped at 1.3730.

Currently, EUR/USD is trading at 1.3718, down 0.27% on the day, having posted a daily high at 1.3773 and low at 1.3699. The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bearish.

EUR/USD sentiment

"Bunds are down 4.4 bp on the day to 1.42% while US yields are down a slightly milder 3.5 bp to 2.62," points out Jamie Coleman from FXBeat. "That puts the spread between the two markets at 120 bp,near the 122 bp highs posted in early May."

In terms of levels, next resistances are at 1.3775 (high May 12) ahead of 1.3783 (daily cloud top) and finally 1.3820 (21-d MA). On the downside, a breakdown of 1.3700 (psychological level) would target 1.3672 (low Apr.4) en route to 1.3643 (low Feb.27)

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