EUR/USD Outlook: Euro Falls Further after Strong US Retail Sales

Technical analysis of Forex market

The Euro accelerated lower after Strong US retail sales (May 0.5% vs Apr 0.3%, revised upward from -0.2%) inflated dollar and reduced greatly probability of rate cut on FOMC policy meeting next week. Fresh weakness surged through Fibo support at 1.1259 (38.2% of 1.1116/1.1347) and cracked 50% retracement at 1.1231, approaching key support zone between 1.1218/04 (converged 20/55/30SMA/daily cloud base/Fibo 61.8% of 1.1116/1.1347). Weaker daily techs on south-heading momentum/stochastic/RSI support scenario, with close below daily cloud base, needed to confirm double-top at 1.1347/43 (7/12 June high). Bears may face headwinds from 1.1218/04 support zone and reduce the pace, for consolidation before final break lower. Broken Fibo 38.2% (1.1259) now offers initial resistance, guarding pivotal barriers at 1.1275/79 (broken 100SMA/daily cloud top) which need to stay intact and keep bears in play.

Res: 1.1259; 1.1279; 1.1294; 1.1303
Sup: 1.1218; 1.1204; 1.1170; 1.1160

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