EUR/USD Daily Fundamental Forecast – October 6, 2016

The EURUSD went back to its naughty rangy ways of trading and after 2 days of volatility, we again had a slow day in this pair. What was noticeable about the last 2 days was that despite the fact that there was lot of news, good and bad, and the euro had been highly volatile, it still stuck to its bigger range between 1.1050 and 1.1250 and there was no break beyond this range though there have been a couple of attempts. This continues to help traders as they know that the range is set and not going to be easily broken and so they can plan their traders better, set their trades and also define their stop losses and take profits much more easily. But the market has the capacity and the character to surprise even the best of traders and thats why it is important to make sure that you trade the range extremes and with proper stop losses so that you can either give up the trade or reverse it as the situation demands.

For yesterday, the pair was stuck in a tight range between 1.1200 and 1.1235 and there wasnt much happening in the market to coax this pair out of its comfort zone. The pair sits at 1.1200 as we write this after making small and brief trips 15 pips either side of this price over the last several hours. Looking ahead, there is no major news to be released from the Euro region today and with most of the risk factors also dimming, we believe that we will continue to see some more of this range today as well. To repeat, the range extremes to look for are 1.1200, 1.1150 and 1.1055 on the bottom side and on the top side, the extremes are 1.1250 and 1.1355. Traders would do well to keep theur sells and buys at appropriate points in these range extremes and trade with proper stop losses. It is not a great time for investors looking for long term returns in this pair and this pair seems more inclined towards the day traders and the range traders.