- EUR / USD loses more momentum and tests 1.1330.
- The third quarter GDP of the Flash EMU stood at 2.2% quarter-on-quarter and 3.7% year-on-year.
- US retail sales surprised to the upside in October.
The EUR/USD It remains stuck in negative territory and hits new 2021 lows near 1.1330 on Tuesday.
EUR / USD is at risk of further decline
EUR / USD’s initial bullish attempt lost steam past the 1.1380 level, and has since turned all the way down. In fact, the supply bias in the dollar remains good and solid and is now pushing the US dollar index (DXY) to new cycle highs near 95.80 due to the continued rally in US yields.
Further maintaining momentum around the dollar, US retail sales surprised to the upside in October after expanding at 1.7% monthly, while underlying sales also rose above estimates at 1.7%. Other data for October showed that industrial production expanded 1.6% and capacity utilization grew 76.4%.
Next on the agenda will be Lagarde’s speech from the ECB, US trade inventories, the NAHB index and ICT flows.
Technical levels
So far, the pair is down 0.31% to 1.1332 and faces the next bullish barrier at 1.1498 (10-day SMA) followed by 1.1556 (20-day SMA) and finally 1.1609 (November 9 weekly high). On the other hand, a break below 1.1329 (November 16 low) would target 1.1185 (July 1, 2020 monthly low) en route to 1.1168 (June 19, 2020 low).
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