EUR/USD rose slightly Monday, but the rebound remained Limited, with the currency pair still stuck below 1.09, currently at 1.09. 1.0880, at compare to a hollow at 1.0848 last Friday after a week of strong decline.
The lightly loaded economic calendar Monday hasn’t influenced EUR/USD, but Tuesday will likely be a different day as forex traders await key data. retail sales for the month of April.
Strong retail sales would be likely to fuel inflation, and could therefore challenge expectations of a Fed rate hike pause, with the key a rise in the Dollar, and a fall in the Euro Dollar.
>>See US Retail Sales data the moment it's released on the Investing.com Economic Calendar!
Outside of Retail Sales In the US, EUR/USD traders should also watch the German ZEW Business Climate Index ahead. 11 a.m., as well as a speech by ECB President Christine Lagarde.
The technical profile of the EUR/USD is deteriorating
From a technical point of view, it will be recalled that the recent fall of the EUR/USD has led to the currency pair touching a bullish trend line visible since the end of 2022.
À At this point, the next support to; to watch is the 100-day moving average, currently at 1.0846. A break below this threshold, which would also confirm a break below the trend line mentioned above, would constitute an important bearish signal which would put 1.08 and 1.07 in the line of sight initially.
À on the upside, 1.09 is the first hurdle in the path of EUR/USD, before the key threshold. of 1.10, then the peak of this year at 1.1095.
EUR/USD faces several key risks on Tuesday, technical profile degrades
