The weaker than expected US Retail Sales report has sent the dollar lower and the EURUSD higher in the process. The pair has surged up to the 1.2746 – 57 area. If you recall , this is the low prices reached in 2013. A move above this level will next target the high from last week at 1.27904.
EURUSD heads up to the resistance ag. lows from 2013.
So far, traders are using the level to sell against, but look for stops on a break above the area.
The lows from 2013 came in at 1.2746 and 1.2756 respectively.
The 38.2% -50% of the surge higher comes in at the 1.2698-1.2712 area. I would expect support buyers against the 1.27119 with stops if the price moves back below the 1.2698 level. Shorts are likely offsides and may feel more pressure to square up/lighten positions on any meaningful dips. This may make hopes of getting to the 1.27119 level more difficult. The saving grace is the resistance is holding. So if the price can stay below, there may be some correction from that hold.
EURUSD should find support buyers near the 38.2% on dips (if lucky).
