EURUSD Higher After Better Than Expected EMU Retail Sales
EURUSD jumps to the highest level since June 24 as investors shift to more risky assets and dump greenback on optimism for a fast recovery of the global economy. The European Monetary Union Retail Sales came in at 17.8%, topping the forecasts of 15% in May, the yearly Retail Sales came in at -5.1% but also above the expectations of -7.5%.
On the other hand, the European Monetary Union Sentix Investor Confidence registered in at -18.2, below the estimates of -10.9 in July. The German factory orders disappointed for one more time. The German Manufacturing Orders rose to 10.4% from -26.2%, but it came below the expectations of 15%. The Yearly reading for the Factory Orders registered in at -29.3%, also below the expectations of -28% in May.
The past week services PMI supported the common currency. The Germany Services PMI reported at 47.3, topping the expectations of 45.8 in June. The Germany PMI Composite registered in at 47 above the estimates of 45.8. From France, the Markit Services PMI came in at 50.7 above analysts expectations of 50.3. The PMI Composite was at 51.7 also above the forecasts of 51.3 in June.
EURUSD Price Daily Analysis
EURUSD is 0.37% higher at 1.1284 as the pair attempts to break above the recent trading range as the bulls are in full control of the pair while a close above 1.13 might be the beginning of another leg higher.
On the upside now, the initial resistance for EURUSD pair stands at 1.1302 the daily high. If the pair breaks the initial resistance, then the next hurdle is at 1.1325 the high from June 24 trading session. A move above 1.1325 might open the way for a test of the June 23 highs at 1.1353.
On the other hand, immediate support for EURUSD stands at 1.1240 the daily low. Next support zone would be met at 1.1187 the low from July 1. If the EURUSD pair breaks that support, then the next target for bears is at 1.1166 the low from June 22 trading session.