EUR/USD hit fresh daily lows but then bounced, overall keeping ts daily range, following the release of in line with expectations US retail sales and above forecast PPI data.
EUR/USD briefly fell below 1.10 and hitb a daily low of 1.0996 but quickly regained the psychological level. The pair was last trading at 1.1015, still 0.36% below its opening price.
Data showed US retail sales rose by 0.6% in September, matching forecasts. Meanwhile, producer price index increased 0.3% in the same month, while core PPI rose 0.2%.
Despite yesterday’s pullback, the greenback remains on demand amid firming expectations of another rate hike by the Fed before the end of 2016.
EUR/USD levels to watch
In terms of technical levels, immediate supports are seen at 1.0960 (Jul 27 low) and 1.0911 (Jun 24 low) ahead of 1.0821 (Mar 10 low). On the other hand, resistances line up at 1.1067 (Oct 12 high), 1.1141 (Oct 11 high/10-day SMA), 1.1170 (200-day SMA) and 1.1196/1.1200 (50-day SMA/psychological level).