The EURUSD pair continued to drop on Wednesday as the bearish trend remains intact and it was down 0.20% during the London session, trading at 1.1320, which are levels last seen in July 2017.
Tuesday’s somewhat positive revision of the second quarter EU GDP from 0.3% to 0.4% failed to spur any significant rally on the shared currency, with less negative German ZEW surveys also did not help the euro at all. Instead, the small rally was sold-off today.
Investors will now focus on today’s US retail sales, which are seen slowing on the month-on-month basis. Additionally, unit labor costs should weaken notably and the empire state manufacturing index is expected to decelerate as well.
The first resistance for today’s trading is around 1.1360, where Tuesday’s lows are seen. If broken, there could be a small relief rally to 1.1430 but as long as the euro trades below these resistances, the outlook seems bullish.
Bears will be targeting the 1.13 level and afterward June 2017 highs around 1.1270. The EURUSD pair seems oversold, but rallies could be sold.