On the daily chart below, it seems clear that the general trend of the EUR / USD continues to be bullish, as the pair holds steady above the 1.1000 psychological resistance, and successfully tested the 1.1085resistance, the highest in a month. The Euro shrugged off the announcement of weak Eurozone inflation levels, which were away from the ECB's target, confirming the bank's decisions at its last meeting to cut interest rates and reinstate bond buying plans, and may raise expectations that the bank may have to introduce more stimulus plans in the future. .
The Euro's gains were supported by pressure on the dollar after disappointing US retail sales. The Commerce Department announced that retail sales fell -0.3 percent in September after rising 0.6 percent in August. The drop came as a surprise to economists who expected sales to rise 0.3 percent from a 0.4 percent increase the previous month. The unexpected drop in retail sales was partly due to a marked drop in sales by car dealers and parts dealers, which fell 0.9 per cent in September after rising 1.9 per cent in August.
Excluding the decline in car sales, retail sales remain down 0.1 percent in September after a revised 0.2 percent rise in August.
According to a report from the Federal Reserve, the US economy grew at a simple to a modest pace last month. The release of the Beige Book comes ahead of the Federal Reserve's next monetary policy meeting scheduled for October 29-30. Expectations reached 89.3 percent for the Federal Reserve to cut interest rates by another 25 basis points, the third time for a US cut rate to offset risks to the US economy.
According to the technical analysis of the pair: EUR / USD price is in an upward correction range, which will strengthen in the event of a move above the 1.1120 resistance, with some technical indicators reaching overbought areas, especially with the loss of the Euro for stronger momentum to achieve higher resistance levels, as pessimism dominates the economic situation in the Eurozone led by Germany. On the downside, a return to stability below the 1.1000 level threatens the future of the current correction, as it returns the bears to stronger support levels that could reach 1.0945 and 1.0880 respectively.
As for today's economic data: There are no significant data releases expected from the Eurozone. From the United States, the Philadelphia Industrial Index, building permits, housing starts, industrial production, jobless claims and oil inventories data will be announced.
