The Retail Sales came out better across the board(+0.8 headline, +0.8% ex autos, +0.7% ex auto and gas). The Empire Manufacturing came out worse than expectations but the Employment component did improve to 19.28 from 13.58 which softened the weak headline blow a bit (6.56 vs expectations of 18.0). The better data has helped the EURUSD.
From a technical perspective:
- The prive moved above the 100 and now 200 bar MA (blue and green lines in the chart above) at the 1.3020 and 1.3031 respectively. This will now be eyed as support for the buyers
- The price has also now breached the 1.3047. This is channel resistance on the 5 minute chart (see above).
The move above the 1.3047 level will next look to target:
- 1.3054 which is the low from April 10th
- Above that and the 1.3077 is the next key target. This is the 38.2% of the move down from last Thursday’s high (see chart below).
- 50% of the move down comes in at the 1.31027 and the 100 and 200 hour MA at the 1.3105-08 currently, makes this area a key resistance target above.
The market has retraced over 61.8% of the days trading range. The price has also moved back above a broken trendline on the daily chart at the 1.30345 level. This level will also be a key level that will be eyed for bias clued today for traders. If the price is not able to move back below this level, additional corrective action can be expected.
