Despite US Retail Sales surpassing expectations, the US Dollar experiences a decline in strength.

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• The US Dollar weakens despite US Retail Sales beating expectations.

The pair currently trades last at 1.09376.

The previous day high was 1.096 while the previous day low was 1.0874. The daily 38.2% Fib levels comes at 1.0907, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0928, expected to provide support.

The EUR/USD is rising on Tuesday, recovering modestly from monthly lows. The pair hit a fresh daily high at 1.0953 and is hovering around 1.0940 as the upside remains limited after US data.

Retail sales rose in July by 0.7% in the US, surpassing the expected increase of 0.4%. Additionally, June figures were revised higher from 0.2% to 0.3%. However, a different report indicated that the NY Empire State Manufacturing Index dropped to -19, against the market consensus of -1.

Following the release of retail sales figures, the US Dollar briefly rose, causing the EUR/USD pair to fall to 1.0896. However, it quickly rebounded and reached a fresh daily high at 1.0953.

The US Dollar is currently weakening after a strong performance over the past three days. The DXY is trading below 103.00, moving away from the one-month high it reached on Monday at 103.45.

The decline in the Greenback is happening alongside lower US yields. The 10-year Treasury yield spiked to 4.27% and as of writing, stands at 4.17%, while the 2-year yield briefly reached levels above 5.00% and is now moving toward 4.90%. Equity prices on Wall Street are falling, with the Dow Jones losing 0.85% after the first hour of trading.

The EUR/USD pair is testing the 1.0950 area, which also coincides with the 20-period Simple Moving Average (SMA) on the 4-hour chart. A consolidation above 1.0950 would strengthen the short-term outlook for the Euro, favoring a potential extension.

On the contrary, if the pair fails to regain 1.0950, it could weaken, with a break below 1.0895 exposing the weekly low at 1.0874, and further below the 1.0830 support area.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0941 at the time of writing. Pair opened at 1.0906 and is trading with a change of 0.32 % .

The pair is trading below its 20 Daily moving average @ 1.1026, below its 50 Daily moving average @ 1.0966 , above its 100 Daily moving average @ 1.093 and above its 200 Daily moving average @ 1.0777

The previous day high was 1.096 while the previous day low was 1.0874. The daily 38.2% Fib levels comes at 1.0907, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0928, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0867, 1.0828, 1.0781
• Pivot resistance is noted at 1.0952, 1.0999, 1.1038

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