The EUR/USD has trended lower and is currently attempting to breach the strong support of 1.12.
Looking at the EUR/USD 30 minutes chart above, we note that it had already went below 1.12 a number of times. So far, the strong support has managed to cause a bounce back of the price action. We mentioned in our weekly review that continued chipping at the support may erode it’s strength as buy positions get filled.
The US Retail Sales is much worse than expected, coming in at -0.2% instead of the forecast of 0.3%. This may add to the risk aversion sentiment although the S&P 500 has seemed to shrug it off for now. We may see more clarity once the US market opens for the day. The US Core Durable Goods Orders is due soon.
The yellow lines are the possible support and resistance regions in the immediate vicinity. Do note that price action in shorter time frames are often sentimental in nature.