The EURUSD currency pair, also known as the Fiber, is trending higher after the Eurozone growth showed growth that was on par with the market’s expectations. The European Union growth data showed that the economy ticked higher in the first quarter from 0% to the widely expected 0.1%, helping the Euro slightly higher against the already weakened US Dollar.

The US Dollar is in the hot seat as the market positions itself ahead of US retail sales, with the debt ceiling talks also on the horizon.

Technical

The EURUSD currency pair’s bulls are currently having the upper hand over the bears, the market could keenly keep an eye as the bulls look to attack the 23.60% Fibonacci retracement level above. The bulls will need disappointing retail sales and a possible stalemate on the debt ceiling if they hope to break above the 23.60% Fibonacci retracement level towards the 1.10069 resistance level. The fall of the initial resistance level would bring the major resistance level at 1.10955 into play.

However, should the bulls’ charge run out of steam, the market would closely watch the 50% Fibonacci retracement level for a possible pullback or a break out to the support level below the golden ratio at 1.07364. The breakthrough below the golden ratio could trigger a sell-off towards the major support level at 1.05137.

Summary

With the Eurozone data failing to sway the markets’ firm attention on the array of economic activity from the US during the trading session, the US retail sale could become the initial indicator to test the extent of the bulls’ charge towards the significant resistance levels. Failure to push through the significant resistance levels would leave a potential for a pullback towards the significant support level, with the 50% Fibonacci retracement level acting as a substantial barrier to push lower.

Sources: TradingView, Reuters, CNBC.

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