The common currency rebounded off Wednesday’s lows as it gained 0.25% on the day. The latest retail sales report rose 0.4% on the month in February, beating estimates of a 0.2% increase. Data from Eurostat showed an increase in non-food products contributing to the gains. Final services PMI for March saw an increase in the index from 52.7 in the previous month to 53.4.
Has the EUR/USD Carved a Bottom?
The euro initially slipped to four-week lows but managed to rebound rather quickly. Price action is seen stalling near the previous highs of 1.1246. A breakout above this level is needed for price action to continue toward 1.3300. In the near term, watch for a dip toward 1.2177 where the euro could be forming a right shoulder in the evolving head and shoulders pattern that may trigger the upside bias.
