EUR/USD: Recovery remains capped below 1.1900 post-EZ data

The EUR/USD pair keeps its offered tone intact, with the Eurozone retail sales data weighing further on the EUR bulls, leaving the rate below 1.1900 levels.

EUR/USD: Focus shifts to Fedspeaks                                         

The major attempted a minor-recovery from a sharp downward spike to 1.1869 over the last hour, but further upside lacks momentum amid a profit-taking rally seen in the European equities ahead of the ECB policy decision, which weighs negatively on the funding currency Euro.

Additionally, downbeat Eurozone July retail sales report also adds to the negative bias seen around the EUR/USD pair, fuelled by dismal Euro area final services PMI reports.

Meanwhile, a turnaround in risk condition boosts the greenback against its main rivals at the common currency. The USD index bounces to test 92.70, reversing from daily lows of 92.44.

The pair now eagerly awaits the ECB policy decision due this Thursday for the next direction. In the meantime, markets look forward to the Fedspeaks and US factory orders data slated for release later today.

EUR/USD Technical Set-up  

Slobodan Drvenica at Windsor Brokers Ltd. explains: “The pair is holding between sideways-moving daily Kijun-sen (1.1866) and north-turning daily Tenkan-sen (1.1921) which mark key points and break of either side would generate stronger direction signal. Bearish extension below next strong support at 1.1829 (20SMA) would generate bearish signal and risk retest of key near-term support at 1.1662 (17 Aug trough).”