The EURUSD once again showed some weakness when it hit a wall at the 38.2% Fibonacci retracement level of the latest downward wave seen above. At present, the pair is trading just below 1.3200. If the euro selling continues and the pair breaks below its 2010 low at 1.3114 and the psychological 1.3100 marker, it could easily fall down to 1.3000.
Fundamentally, the recent 2.4% drop in German retail sales added some more selling pressure on the euro. If tomorrow’s retail sales figure for the entire euro zone comes in less than the market’s 0.1% forecast, the EURUSD could once again slide. Germany takes up about a third of the entire output of the euro zone. Given this, it is likely that we see a weaker sales number for the entire zone.