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8 Jan 2014
EUR/USD falls to daily lows despite strong sales data
FXstreet.com (Córdoba) - The EUR/USD dipped back below 1.3600 and extended its decline to fresh daily lows during the European session despite upbeat retail sales data.
Eurozone retail sales rose by 1.4% from in November and were 1.6% higher than a year before, beating expectations of 0.2% and 0.3% increases respectively. Meanwhile, the region's unemployment rate remained steady but persistently high at 12.1% for an eighth consecutive month in November.
The EUR/USD moved lower after the data and touched a 2-day low of 1.3584 so far. At time of writing, the pair is trading around 1.3590, 0.2% down on the day, but still within its January's range, which is bounded by 1.3570 on the downside.
EUR/USD outlook
"Two moving averages, namely the ones for 55 and 100 days, continue to underpin the currency pair, postponing a likely decline in the longer perspective. According to the technical indicators, which are mixed on all the time-frames, this support may stay intact for quite some time", says the Dukascopy Bank Team. "Still, given that EUR/USD received strong bearish impetus after touching the long-term resistance trend-line at 1.3832, the risks are heavily skewed to the downside".
Eurozone retail sales rose by 1.4% from in November and were 1.6% higher than a year before, beating expectations of 0.2% and 0.3% increases respectively. Meanwhile, the region's unemployment rate remained steady but persistently high at 12.1% for an eighth consecutive month in November.
The EUR/USD moved lower after the data and touched a 2-day low of 1.3584 so far. At time of writing, the pair is trading around 1.3590, 0.2% down on the day, but still within its January's range, which is bounded by 1.3570 on the downside.
EUR/USD outlook
"Two moving averages, namely the ones for 55 and 100 days, continue to underpin the currency pair, postponing a likely decline in the longer perspective. According to the technical indicators, which are mixed on all the time-frames, this support may stay intact for quite some time", says the Dukascopy Bank Team. "Still, given that EUR/USD received strong bearish impetus after touching the long-term resistance trend-line at 1.3832, the risks are heavily skewed to the downside".