FXStreet (Córdoba) - After the latest recovery attempt was capped by the 1.3560 area, the EUR/USD is back headed south following better-than-expected US wholesale data.
US wholesale inventories rose 1.1% in April versus 0.5% expected, while wholesale sales climbed 1.3%, the Commerce Department reported Tuesday. The EUR/USD dropped back below 1.3550 and it is currently trading at 1.3545, recording a 0.35% loss on the day.
Valeria Bednarik, chief analyst at FXStreet notes that US-Eurozone yield spreads are weighing on the EUR/USD in absence of economic data. “The 4 hours chart shows a strong bearish momentum, with indicators finally moving away from neutral readings. 1.3520 comes as immediate support, and once broken, the pair has room to extend down to 1.3476, YTD low”.