The currency pair corrected last week and failed to hold the support at 1,1285 frustrating our expectations. The main reason is the trade conflict between USA, China and Europe.
There was a couple of important releases last week including US CPI and Retail Sales data. US CPI declined to 0,1% for the reported period, which meet the expectations. As for the Core CPI, it remained at 0,1%, which was lower than forecasted.
US Retail Sales have shown 0,5% growth, which was lower than forecasted. Core Retail Sales has meet the expectations and remained without changes.
Euro is still under the pressure. There is a probability for the currency pair to go down towards the local lows at 1,1100. This psychological support prevents EUR/USD from falling below.
