EUR/USD struggling to find momentum near 1.07
|- The EUR/USD is stuck near the 1.0700 handle as the pair cycles.
- EU Retail Sales came in mixed on Wednesday.
- ECB President Lagarde to speak at a non-central bank event on Thursday.
The EUR/USD is pivoting around 1.0700 on Wednesday, spreading out into a 100-pip range through the week's trading with little direction momentum sending the pair anywhere meaningful.
EU Retail Sales came in mixed on forecasts, with the short end of the data coming in below expectations and a better-than-expected reading for the annual figures.
MoM EU Retail Sales for September printed at -0.3%, declining more than the expected -0.2%, seeing a milder recovery from the previous reading of -0.7% (revised upwards from -1.2%).
Eurozone Retail Sales decline 2.9% YoY in September vs. -3.2% expected
YoY EU Retail Sales were expected to show a 3.2% decline, but managed to eke out a slight forecast beat, printing at -2.9%. The annualized September Retail Sales beat expectations, but still declined from August's annualized -12.8% print, which was also revised upwards from -2.1%.
European Central Bank (ECB) President Christine Lagarde will be speaking at the inauguration of the House of the Euro in Brussels on Thursday. The House of the Euro is a pan-European central bank working space where policymakers from various EU central banks can collaborate and work together.
The event is not a policy event, but investors will be keeping a close eye for any excessively hawkish or dovish comments from the ECB's President Lagarde.
EUR/USD Technical Outlook
The EUR/USD is strung up in the midrange between the 200- and 50-day Simple Moving Averages (SMAs) that are currently stacked bearishly, with the 50-day SMA riding down towards 1.0600 below the 200-day SMA currently parked near 1.0800.
With long-term technical resistance sitting at the 200-day SMA and near-term technical support near the 1.0600 handle, the EUR/USD is set to see some directional drift following a weak break of the descending trendline from July's swing high into 1.1275.
EUR/USD Daily Chart
EUR/USD Technical Levels
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