FXStreet (Mumbai) – The EUR/USD pair dipped to 1.1104 levels even though the data released in the Eurozone showed retail sales ticked higher in April, while the unemployment rate declined in May.

EUR weakens as German yield pared gains

The pair saw a minor recovery to 1.1138 before resuming the fall, after the Eurozone retail sales in Apr printed higher-than-expected at 2.25 year-on-year. Meanwhile, the unemployment rate in May ticked lower to 11.1%, compared to the expectation of 11.2%.

The shared currency is being pushed lower by the German 10-year Bund yield, which fell from a high of 0.749% to trade at 0.71%. Moreover, the gains in the EUR witnessed in the previous session were largely driven by the sharp rise in the benchmark German 10-year yield.

EUR/USD Technical Levels

The pair currently trades at 1.1110. The immediate support is seen at 1.11, under which the pair could drop to 1.1072 levels. On the flip side, a break above 1.1132 could push the pair higher to 1.1165.

The EUR/USD pair dipped to 1.1104 levels even though the data released in the Eurozone showed retail sales ticked higher in April, while the unemployment rate declined in May.

(Market News Provided by FXstreet)

By FXOpen