EUR/USD under pressure ahead of EZ retail sales. Gold struggles to complete double bottom reversal pattern (EZU).

EUR/USD slips ahead of Eurozone retail sales 

EUR/USD trades under pressure amid a US Dollar rebound

Upbeat comments from Fed Chair Jerome Powell regarding the US economic recovery, combined with a softer risk tome is lifting the greenback. 

Eurozone retail sales up next. Expected to show 1% increase MoM in Feb after -5.7% decline in January. 

Where next for EUR/USD? 

The pair has settled over its relatively flat 200 EMA on the daily chart, however the upside potential appears limited. The pair continues to trade below its 50 EMA which maintains a bearish slope.  

The RSI has recovered and trades at the mid-line, points lower and has lost its bullish strength reflecting limited buying interest. 

Any push higher would need to break above 1.19 round number and the overnight high. Strong resistance can be seen at 1.1945 the 50 EMA and horizontal resistance March 23. A break above this level could see and extension towards 1.1990 / 1.20. 

On the flip side, failure to break 1.1900 could see the pair edge back towards support at 1.1840 the 200 EMA. A break below this level could see the bearish momentum pick up towards 1.1795 and 1.17 (FXE, UUP). 

Can gold break the double bottom neckline? 

Gold prices are retreating extending losses from Friday following upbeat comments from Fed Powell. 

A rising US Dollar is exerting pressure on the precious metal, although falling yields could offer support. 

Attention will be firmly on tomorrow’s CPI. A higher than expected reading could benefit Gold which is widely considered a hedge against inflation. 

Where next for Gold? 

Gold has formed a  double bottom chart pattern after hitting US$1677 twice. The double pattern is considered a reversal pattern and often signals the end of a downtrend.  

Immediate resistance can be seen at 1744 the 50 EMA on the daily chart and the daily high. A successful move beyond this level could see the bullish run extended towards 1775 high February 26 and 1800, the round number and 100 EMA.  

Failure to break above the neckline at 1744 could see the price head back lower for another attempt on 1677 (GLD).