Support – 1.1296, 1.1236, 1.12
- Euro dipped as expected on strong US data release. The retail sales report showed across the board strength and hence, the currency pair is likely to stay under pressure heading into the weekend.
- The immediate support is seen at 1.1296 (daily 50-SMA) which is likely to be put to test.
- Also note 1.13 is a major support – joined from March 2015 low-April 2015 and extended comes to 1.13.
- A weak closing today would also push daily below 50.00, adding to concerns. We have already had break from on 4-hr chart.
- Hence, a violation at 1.13 next week or today could prove fatal for EUR bulls. invalidation is seen only if prices move back above 1.1465 on day end closing basis.