On Tuesday the 16th of July, trading on the euro closed significantly down against the dollar, shedding a total of 0.4%. The pair traded within a narrow range in the Asian session, but the euro started to falter as the Europeans entered the market along with the release of the ZEW economic sentiment survey for Germany.
The economic sentiment index turned out significantly worse than expected at -24.5 against an optimistic prediction of -22.3. The index’s previous reading was -21.1. The value for Europe as a whole exceeded expectations (-20.3 against -20.9). However, this was slightly worse than the previous reading of -20.2.
The US session saw the dollar further strengthen on the back of the publication of the retail sales control group for June, which exceeded the rather pessimistic expectations by 0.4%, and improved on the previous reading by 0.1%.
The downtrend on the EURUSD is still alive. A breakout of 1.1205 will provide an opportunity to open short positions will stop levels at 1.1227 and a target rate of 1.1175.