Here’s an update of the EURUSD chart that I drew yesterday. As you can see, the pair broke below its previous low at 1.3114 to register a new one at 1.2934. Conditions, however, are already oversold as indicated by the stochastics. Given this, the pair could retrace for awhile and probably reach somewhere around 1.3100 before continuing its trek downward.
On the economic front, the euro zone’s retail sales figure indeed came in weaker than the market’s 0.1% forecast, adding more selling pressure to the euro. Tomorrow (May 6), factory orders in Germany are seen to have posted a 1.4% gain after coming in flat at 0.0% during the month prior. Such leap could give the euro some lift, giving the traders a better price for them to sell it again.