The dollar didn’t receive any meaningful support from strong US retail sales data as traders are still focused on the Trump’s tax plan. The uncertainty on this front continues to depress the greenback, which plays into the euro’s hands.
The Fed still expects three quarter-point rate hikes next year. But considering low and a number of other economic as well as political risks in the US, the may be forced to slow down the tightening in the longer-term. Meanwhile, the ECB is expected to continue to cut the rate of bond purchases on the back of strengthening economic fundamentals for Germany and the Eurozone.
In the short-term, EURUSD needs to regain the 1.18 mark. The move above this psychological level will introduce scope to strong resistance at 1.1855. Selling interest is also noted in the 1.1870 zone. Meanwhile the major support is at 1.17 where the pair is still good to buy on dips. The immediate supports come at 1.1770 and 1.1740.