Forex: EUR/USD sharpens fall on US session, low at 1.3024

The EUR/USD gave in to demand for the greenback as the European session opened, pulling the pair from 1.3065 and easing even below the 1.3000 mark throughout the morning. The release of US retail sales data sharpened the fall, still ongoing at 1.3024 low also after US business inventories.

Business inventories rose 1.0% in January, surprising investors on the upside as market consensus was of 0.4%. December data was revised higher, from 0.1% to 0.3%.

Retail sales in the US rose 1.1% in February, surprising the 0.5% expectations. January data was revised higher, from 0.1% to 0.2%. Ex-auto data surprised at 1.0%, beating 0.5% consensus, and saw the January figure being revised higher, from 0.2% to 0.4%.

US import prices beat consensus at 1.1% in February, instead of the 0.5% expected, and increased the pace from January's 0.6%, with annualized data rebounding from -1.3% to -0.3%. Export prices rose from 0.3% to 0.8%, beating 0.3% consensus, with annualized data rising from 1.1% to 1.5%.

“This structure isn’t likely to continue, but may result in the formation of head & shoulders reversal pattern”, wrote Roboforex.com analyst Igor Sayadov, pointing to a new low at 1.2920 as an alternative scenario.