US Retail Sales

EUR/USD has retreated to 1.1575 after touching its highest level since June, with traders assessing shifting Federal Reserve and ECB expectations. Technical traders are watching whether a shooting star pattern triggers a pullback toward 1.1500 or whether a break above 1.1615 revives upside momentum.

The US dollar remains supported by resilient US retail sales and jobless claims, reinforcing expectations that the Federal Reserve may keep policy restrictive for longer. DXY is still capped below trendline resistance, while EUR/USD and GBP/USD continue to hold above important moving averages.

AUD/USD has rebounded from its monthly low as softer US inflation data pressured the US dollar and shifted Federal Reserve expectations. Technical traders remain cautious, with 0.7000 resistance, a bearish flag pattern, and 0.6900 downside risk shaping the near-term setup.