Strong data out of the US
The EURUSD has moved to new session lows after some pretty decent retail sales data. The headline numbers beat expectations with the control group up a strong 0.9% after a 0.7% revised gain in the prior month (from 0.3%).
Looking at the daily chart above the EURUSD is trading at the lowest level since the swing low at 1.12663 on November 28th. In the move lower today, the price fell below a trend line on the chart at 1.1320.
Drilling to the 4-hour chart below, the 1.12624-701 is home to swing lows not only from the November 28th but also from Nov. 14-15. That is the next target level to get to and through from a technical level. It could also stall the fall, so be aware for some profit taking. A move below will look toward the lows from November at 1.12144.
While moving lower today, the pair fell outside a box where most of the trading has taken place over the last few weeks. The break below the 1.1304 -10 area took the pair out of that box. That area is now a risk level for shorts looking for more downside momentum. Stay below and the seller are in control. Move above and the waters are muddy again.
Seller are in control, but support target is being eyed that could slow the fall.