EUR/USD off lows but still vulnerable

By FXstreet.com | June 12, 2014 AAA

FXStreet (Córdoba) - The EUR/USD saw a timid spike and moved off daily lows following the release of disappointing US data.



While US jobless claims increased to 317K last week versus 310K expected, retail sales rose only 0.3% in May (0.6% expected) and 0.1% excluding autos (0.4% expected). The EUR/USD moved a few pips higher to a session high of 1.3538 immediately after the data but lacked follow-through.



Despite this intraday shocks, the EUR/USD remains under pressure amid widening yields spreads between the US and the Eurozone, given the contrast between Fed policy, which has started to withdraw stimulus, and the ECB which seems to just have started.



EUR/USD technical levels



In terms of technical levels, a break below 1.3500 (psychological level), would pave the way towards 1.3476 (2014 low Feb 3) and not much in the way till 1.3403/00 (200-week SMA/psychological level). On the flip side, resistances could be found at 1.3548 (Jun 12 high) and 1.3556 (Jun 11 high) ahead of 1.3600 (psychological level/Jun 10 high).



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