Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity, yesterday declined to -0.3% , let’s highlight the daily chart of EURUSD and USDINDEX.
The EURUSD maintained a strong bullish momentum, this scenario opens the psycho level 1.3000 , this level needs to be watched carefully , If this level fails to hold , focus will be on the 1.3315/1.3444 levels in medium term view ,while stability below 1.3000 could mean a return to the 1.2500 levels.
On the downside , support comes at the 1.2620 ahead of the 1.2500 levels , with this level intact any decline above both levels is an opportunity to buy the pair on dips .
The USDINDEX maintained a strong bearish momentum yesterday , printed resistance at 86.10 levels , focus will be the key support 84.32 levels , this level is likely to provide some support , but If fails , expect to see a free fall towards the 81.60 levels.
Keep in mind , as long as resistance 86.85/86.10 holds , the dollar will remain under pressure , however ; strategy is to short the USD at any rise caused by any positive US data at least the upcoming days .
