EUR/USD: Having earlier reached 1.3520, the Euro has retreated and is now pretty much unchanged from levels seen this time yesterday. The ECB Monthly Report and EU/German GDP, both due later today, will give the market some direction although most traders will be sidelined ahead of the G20 meeting which starts later today in Moscow.
On the data front, US retail sales rose 0.1% in January which was pretty much in line with expectations.
Technically the picture is picture is rather neutral, although the short term indicators do look a little overbought and appear to be turning a little lower.
It would seem that a session contained within today's parameters is most likely, with short term direction dependent on the GDP data, but overall waiting for the outcome of the G20.
On the topside, 1.3485 and then 1.3520 will attract sellers ahead of 1.3530 (50% pivot of 1.3710/1.3353) and 1.3570 (61.8%).
On the downside support would now be seen at 1.3400 and then at 1.3360 which should prove quite strong.
It is not really worth being too involved at this stage but further out the dailies are still hinting that the downside is probably the path of least resistance and next week could see a return to the lower end of the recent range.
In the meantime, wait for the outcome of the GDP, which is expected to show a QQ reading of -0.4%, and which is unlikely to drive the Euro very much higher.
Economic data highlights will include:
G20, German, EU GDP, ECB Monthly Report
