EUR/USD rises sharply after US retail sales

By FXStreet FXStreet (Córdoba) – EUR/USD pushed higher and reached its highest level since Monday as the dollar weakened following disappointing US retail sales data.

US retail sales fell 0.1% to a seasonally adjusted $448.1 billion in December compared to a flat reading expected. From a year earlier, sales grew just 2.1% in 2015. Separated data showed the Empire State manufacturing index slumped to -19.37 (vs -4.00 exp) in January, while producer price index fell 0.2% the headline but excluding food and energy rose 0.1% in December (both matching expectations)

EUR/USD rose beyond yesterday’s high and reached a peak of 1.0958 in recent dealings. At time of writing, the pair is trading at 1.0945, recording a 0.75% gain on Friday.

The shared currency was already on demand amid renewed risk aversion following another slump in Chinese equities. Previous session rally in Wall Street and oil bounce proved to be short-lived,

EUR/USD levels to watch

In terms of technical levels, next supports are seen at 1.0814 (50-day SMA), 1.0804/00 (Jan 13 & 8 lows/psychological level), 1.0770 (Jan 7 low) and then 1.0710 (Jan 5 low). On the other hand, next resistances line up at 1.0969 (Jan 11 high) and 1.1011 (100-day SMA) ahead of 1.1043 (200-day …read more

Source:: FX Street