EUR/USD: Poised to extend its slump on a break below 1.2015

EUR/USD is trading near a daily low at 1.2030 as the dollar catches momentum with upbeat US Retail Sales. The pair is technically bearish and at risk of breaking lower, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“US Retail Sales rose in January 5.3%, much better than anticipated. The core reading, Retail Sales Control Group, jumped from -2.4% to 6%, also beating expectations. Also, the country published the January Producer Price Index, which was up 1.7% yearly basis.”  

“Later today, the country will unveil Industrial Production figures and the latest FOMC Meeting Minutes.”

“The EUR/USD pair is developing below the 1.2060 price zone, the 38.2% retracement of its November/January slump. A steeper decline could be expected on a break below 1.2015 the immediate support.”