Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Euro Breaking News: EZ Retail Sales Beat Unable to Deter 20-Year Lows on EUR/USD

Euro Breaking News: EZ Retail Sales Beat Unable to Deter 20-Year Lows on EUR/USD

Warren Venketas, Analyst

EUR/USD TALKING POINTS

  • Euro Retail Sales (MAY) – ACT: 0.2%; EST: -0.4%
  • Recessionary fears dominate after U.S. 2s10s yield curve inverts.
Advertisement

EURO FUNDAMENTAL BACKDROP

The euro did little in the way of recovery after better than expected retail sales data for May, partly due to the fact that the print is the lowest since August 2021. Couple that with the current recessionary backdrop gripping markets after the U.S. Treasury 2s10s yield curve inverted, markets remain ‘risk-off’.

EUR/USD ECONOMIC CALENDAR

EZ retail sales for May

Source: DailyFX economic calendar

TECHNICAL ANALYSIS

EUR/USD DAILY CHART

eurusd daily chart

Chart prepared by Warren Venketas, IG

EUR/USD has now slumped to 20-year lows pushing below the 2017 swing low at 1.0340 yesterday, and now looking towards the July 2002 swing high at 1.0210 post-announcement.

Because most markets are overextended at this point including EUR/USD, we may see support holding at 1.0210 and potentially a short-term pullback towards 1.0340.

Resistance levels:

  • 1.0340 (2017 swing low)

Support levels:

  • 1.0210 (2002 swing high)
  • 1.0064

IG CLIENT SENTIMENT DATA: MIXED

IGCS shows retail traders are currently LONG on EUR/USD, with 75% of traders currently holding long positions (as of this writing). At DailyFX we typically take a contrarian view to crowd sentiment however due to recent changes in long and short positioning we arrive at a short-term cautious disposition.

Contact and follow Warren on Twitter: @WVenketas

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES