FXStreet (Córdoba) - The EUR/USD failed to hold above the 1.3400 level and pulled back half of its post US retail sales rally.

The EUR/USD rose sharply and peaked at 1.3414 after the greenback was hit by disappointing retail sales figures. However, the pair slid back below the psychological level shortly after as investors seem unwilling to build long positions on the European currency that remains close to its 2014 lows. At time of writing, the EUR/USD is trading at 1.3375, still a few pips above its opening price.

"Hopes for a clear divergence between US and European economic fortunes are dimming as growth around the globe seems sluggish at best", said Jamie Coleman, analyst at FXBeat. "The US is the best of the bunch, but not by a wide margin. Seems like we are in a pattern of two steps forward, followed by one step back. You move forward, but at a very choppy pace".

EUR/USD technical levels

As for technical levels, the EUR/USD could find next supports at 1.3332 (2014 low Aug 6), 1.3300/1.3295 (psychological level/Nov 7 low) and not much till the 1.3250 area (mid-September lows). On the other hand, resistances could be found at 1.3414 (Aug 13 high),1.3432 (Aug 8 high) and 1.3444 (Aug 1 high).

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