The dollar resumed its sell-off in the Tuesday session, falling to its lowest level since August 2008 against the euro at 1.4874 and the Australian dollar at 0.9124. Spot gold continued to extend its gains, touching a fresh all-time high just shy of the $1,070 level at $1,069.70, while crude oil edged up higher to $73.87 per barrel. US equities were largely flat, little changed from the previous session.

With corporate earnings season picking up this week, traders will closely scrutinize tomorrow's economic reports. The data to be released include September retail sales, import prices, export prices and business inventories. The headline retail sales report is expected to post a 1.4% decline in September compared with a 2.7% increase a month earlier. The excluding automobiles retail sales are expected to improve by 0.2% for September versus a 1.1% in the previous month.

Euro Extends Gains

The euro shrugged off the disappointing Germany ZEW sentiment survey released overnight, climbing to its highest level against the dollar since August 2008 at 1.4874. Germany's October ZEW current conditions survey deteriorated further to -72.2, missing expectations for an improvement to -69.0 from -74.0 in September. The ZEW economic sentiment also fell short of consensus estimates for an improvement to 58.3, instead slipping to 56.0 from 57.7 previously.

In the session ahead, the calendar is light with the release of the Eurozone August industrial production. On a monthly basis, industrial production is estimated to reverse the 0.3% decline from July, improving by 1.0% while improving marginally with a 15.5% decline versus a 15.9% decline in the previous month.

EURUSD continues to hover near its 14-month highs near 1.485 with interim resistance starting at 1.4875, followed by 1.49 and 1.4940. Subsequent resistance is eyed at 1.4970, backed by 1.50 and 1.5030. On the downside, support begins at 1.48, followed by 1.4760 and 1.4720. Additional losses will target support at 1.47, backed by 1.4660 and 1.4630.