EUR/USD has posted gains on Tuesday. Currently, the pair is trading at 1.1246, up 0.37% on the day. On the release front, the focus is on the service sector. German and eurozone services PMIs indicated expansion and beat their estimates. Eurozone retail sales slowed to 0.4%, but managed to beat the forecast of 0.2%. In the U.S., this week’s employment data kicks off with ADP nonfarm payrolls, which is projected to tick up to 184 thousand. As well, the ISM Non-Manufacturing PMI is expected to drop to 58.1 points.

The U.S. economy remains strong, but this week’s key numbers have been anything but impressive. The weak durable goods orders data comes on the heels of soft retail sales numbers for March. Retail sales declined by 0.2%, shy of the estimate of +0.3%. Core retail sales declined by 0.4%, a sharp drop from the 0.9% gain a month earlier. Both indicators posted a second decline in three months, which is bound to raise concerns about the strength of the economy. There are concerns that the economy could be slowing down – growth for the first quarter could be as low as 0.8% annualized, compared to 2.2% in the fourth quarter.

The ongoing recovery might now confront immediate resistance near mid-1.1200s, above which the pair is likely to aim towards reclaiming the 1.1300 round figure mark before eventually darting to test the 1.1325-30 supply zone. Any subsequent up-move could get extended but seems more likely to remain capped near another descending trend-line resistance, currently near the 1.1375 region.

EURUSD TODAY:
Daily open: 1.12042
Daily Last high: 1.12547
Daily Last Low: 1.12003
Daily current growth: +0.37%