EUR/USD Is Nearing A Relevant Support Area And Is Poised To Accelerate Its Slump

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EUR/USD Current Price: 1.1712

• US Retail Sales came in worse than anticipated, down by 1.1% MoM in July.
• Eyes turn to the FOMC Meeting Minutes, as investors await tapering hints.
• EUR/USD is nearing a relevant support area and is poised to accelerate its slump.

The EUR/USD pair plunged as risk aversion continued to dominate financial markets, trading at around 1.1710 by the end of the American afternoon. The already dented market’s mood took a turn to the worst after the release of tepid US data. Retail Sales were worse than anticipated, falling 1.1% MoM in July, while the core reading Retail Sales Control Group was down 1%, also missing expectations. The US also published July Industrial Production, up 0.9% MoM, and Capacity Utilization which rose 76.1% MoM, both better than anticipated.

Earlier in the day, the EU released the preliminary estimate of the Q2 Gross Domestic Product printed at 2% as expected, although the annual reading came in slightly below expected at 13.6%. Employment change in the same quarter beat expectations, up 1.8% vs the -1.8% previous.

On Wednesday, the EU will publish the final reading of the July Consumer Price Index, while the US will release the Minutes of the latest FOMC meeting. Speculative interest will be looking for hints on tapering, moreover after upbeat employment figures.

EUR/USD short-term technical outlook

The EUR/USD bottomed for the day at 1.1709,  holding nearby and at risk of falling further. The 4-hour chart shows that the price has settled well below all of its moving averages, with the 20 SMA having lost strength upwards. In the meantime, technical indicators remain near their daily lows well into negative territory, supporting a bearish extension on a break below 1.1705, the immediate support level.

Support levels: 1.1705 1.1660 1.1620

Resistance levels:  1.1750 1.1790 1.1830

Image Sourced from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.