Euro (EUR) slid down against the U.S. Dollar (USD) last week, decreasing the price of the EURUSD pair to less than 1.2100, ahead of the release of the European Retail Sales news. The technical bias, however, remains bullish in the long run because of a higher high on the weekly chart.
Technical Analysis
As of this writing, the EURUSD floats around 1.2039 with a few support levels in sight. The price of the pair might find some sustainability near the given below price levels;
Short-Term Support Levels
1.1941 – the major horizontal support
1.1893 – the high of November 15, 2020
1.1800 – the psychological level
On the Upside, the pair might face some resistance near the listed below price tags.
Short-Term Resistance Levels
1.2183 – the high of January 24, 2021
12300 – the psychological number
1.2348 – the major horizontal resistance
European Retail Sales News
Eurostat is scheduled to release figures for the Retail Sales today (February 04, 2021). According to economists, the retail sales news registered a reading of 0.3% in December 2020, as compared to the reading of -2.9%, in the month before.
Eurozone retail sales stats reflect changes in sales of the retail sector of the Eurozone. Changes in the retail sales figure represent the performance of the retail sector in the short term. It is an important economic indicator since it estimates the consumer spending patterns in the coming days. Generally speaking, a high reading suggests a bullish market for the EURUSD pair and vice versa.
Conclusion
Given the macro-economic outlook of the pair, here is a short to medium term trading plan for EURUSD:
Sell Stop @ 1.1980
Stop Loss @ 1.2050
Take @ 1.1850