The Euro is extending declines amid a strong economic report from the United States. The CB Consumer confidence report rose to 131.6 in January, beating estimates of a headline print of 128.2. The data for the previous month was revised higher to 128.2.
Elsewhere, the Richmond manufacturing index was also higher at 20, beating estimates of -3 and up from -5 previously.
EUR/USD Likely to Bounce Off Support
The currency pair’s declines have pushed price action to the support area of the 1.1000 region. We expect prices to consolidate around this level in the near term. Following which, as long as there is no further declines, the EURUSD could be looking to correct in the near term.
The correction could be limited to 1.1051 or possibly back to the breached support level of 1.1072.
