This week brought a lot of disappointment from the US data and International Monetary Fund, throwing dollar back from its previous highs versus all of its major counterparts. We could see strong reaction to US retails sales on Tuesday, set of industrial data yesterday and poor housing data and initial jobless claims on Thursday.
Most of them pointed to poor performance during March, dragging down the US currency and boosting euro in this way. As the European Central Bank’s (ECB) President Mario Draghi did not tell anything surprising and major attraction came from an aggressive feminist protester, satisfied euro moved higher, correcting from previous losses.
As the Q1 showed generally weak performance in the US and optimism over the ECB’s quantitative easing rose, we see a strengthening on the european currency.
From fundamental point of view, this correction is regarded as transitionary and trend is about to be kept bearish on EUR/USD pair, with Fed’s rate-hike in focus.
From technical point of view, we still see bullish TP at $1.0774, later at $1.0864, or $1.1025. Our bearish TP remains on $1.0491, with previous one at $1.0548.
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