EUR/USD falls to react positively to better German sales data

Yesterday evening the EUR/USD did briefly top its 200 day moving average (then and still at 1.0869). The Euro traded for a fleeting moment at 1.0871, but given the price action, it is fair to say that level did effectively cap the topside, as expected would be the case. The EUR/USD later closed in the US at 1.0856. Today it has traded a range so far covered by 1.0844 to 1.0860. The latest German retail sales have just now been released and they have topped market forecasts by some margin. German sales were forecast to to fall by 0.6% in September. They have actually risen by 1.2%. However, on an annualised basis they have fallen further below consensus and that might explain the lack of any topside reaction so far in the EUR/USD. It is also fair to say that the push lower in the EUR/JPY so far this morning has helped to stunt any EUR/USD gains too. The lower DAX futures this morning have not reacted to this data either. So, that 200 day moving average very much remains on the radar again today. The EUR/USD is currently trading at 1.0852