FXstreet.com (Córdoba) - The Dollar strengthened further early New York session following better-than-expected US retail sales data, dragging EUR/USD to its lowest level in nearly 4 weeks. EUR/USD broke below yesterday's low, sliding to 1.3051 before recovering slightly.
At time of writing, EUR/USD is quoting at the 1.3060 area, recording a 0.7% loss on the day. From a technical view, "The hourly chart shows a strong bearish momentum with price at fresh monthly lows, while in the 4 hours chart the pair is also biased lower after finding resistance in the 1.3200 area, 200 EMA over past Asian session", said Valeria Bednarik, chief analyst at FXstreet.com.
"Slightly oversold in smaller time frames, the pair may attempt a bullish corrective movement before resuming the downside", said the analyst. "However, a break below 1.3040 immediate support, will reduce dramatically chances of a pullback".
Benarik locates next support levels at 1.3040, 1.3000 and 1.2970 while she sees resistance at 1.3085, 1.3110 and then at 1.3145.
