EUR/USD flirting with 50-DMA in Asia

EUR/USD pair is attempting gains in Asia following Thursday’s gains, now attempting a break above the daily 50 moving average level of 1.1145.

Rejected at falling trend line

Spot was offered around 1.1190 levels yesterday, which is the resistance of the falling trendline coming from June 24 high – Aug 2 high. Prices dropped to a low of 1.1131 in early Asia today before recovering to near 1.1145 levels.

The focus today is on the US advance retail sales number. Eurozone industrial production and GDP numbers may come and go without much fanfare unless the data significantly higher/lower than consensus estimates.

EUR/USD Technical Levels

Acceptance above 1.1145 (50-DMA) would expose falling trend line resistance at 1.1177. A violation there could yield 1.1234 (Aug 2 high). On the other hand, a breakdown of support at 1.1131 (daily low) would shift risk in favor of a drop to 1.11 (zero figure). Further losses could run into support at 1.1048 (Aug 5 low).