• The EUR /USD pair fell as low as 1.0595 in the early US session, as greenback clawed back from earlier losses after data showed U.S. retail sales rose solidly in December.
   
• U.S. retail sales rose solidly in December, providing further evidence that the economy ended the fourth quarter with momentum and is poised for stronger growth this year.
   
• The Commerce Department said retail sales increased 0.6 percent last month. November's retail sales were revised up to show a 0.2 percent rise instead of the previously reported 0.1 percent gain.
   
• Further upside in this pair is expected to be limited as the pair finds strong resistance at 1.0692 which should limit further upside and bring decline towards lower levels in the short term.
   
• To the upside, the immediate resistance can be seen at 1.0650, a break above this level would expose the pair to next resistance level at 1.0692.
   
• To the downside, immediate support can be seen at 1.0596, a break below at this level will open the door towards next level at 1.0561.
  
  Resistance Levels
  
  R1:  1.0650 (50% Retracement level)       
  
  R2: 1.0692 (61.8% Retracement level)    
  
  R3: 1.0772 (Dec 7th high)
  
  Support Levels
  
  S1: 1.0596 (Session lows)                             
  
  S2: 1.0561 (23.6% Retracement level)
  
  S3: 1.0500 (Psychological levels)