Bearish Sign for EUR/USD, After Failing to Bounce Off the 50 Daily SMA Despite Retail Sales Declining in the US Dollar
EUR/USD is hesitating to bounce off the 50 daily SMA, showing signs of weakness
The EUR/USD was quite bearish last year, as the USD kept declining due to the political issues there. It pushed up to 1.2350s by early January, but in Q1 the USD gained some momentum and this pair retreated down to 1.17.
The bullish trend resumed again in April, as the USD turned bearish again, but this pair couldn’t reach the previous highs, which was the first bearish signal. Instead, it has been making lower highs since late May and this week the price fell to the 50 SMA (yellow) on the daily chart.
EUR/USD Live Chart
Normally, we would see a bounce off this moving average today, if buyers were in control. But, I’m not sure now, since the EUR/USD is failing to bounce, even after the decline in the US retail sales in May. This is another bearish sign for the pair.
We are already short on the EUR/USD from down below, so this sort of price action is good for us. Below is the retail sales report from the US:
US Retail Sales, May 2021
- May retail sales -1.3% versus -0.8% estimated
- April sales were 0.0%, revised higher to 0.9%
- Core retail sales, ex. auto -0.7% versus 0.4% estimated
- April core sales were -0.8%
- Sales ex. auto and gas -0.8% versus 0.0%.
- April was revised higher to 0.1% from -0.8%
- Control group -0.7% versus -0.5% estimate
- April control group revised to -0.4% from -1.5%. The control group excludes food services, auto dealers, building materials and gasoline stations
- Full report CLICK HERE
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals