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EUR/USD Fundamental Forecast – September 26, 2016

By:
Colin First

The EURUSD pair continued on its ranging trading with a bullish bias. We had specified a few times earlier as well that it is in the interest of European

EUR/USD Fundamental Forecast – September 26, 2016

The EURUSD pair continued on its ranging trading with a bullish bias. We had specified a few times earlier as well that it is in the interest of European banks to keep the Euro in a range especially since the Brexit as no one can afford 2 weak currencies in the same region and one look at the charts will confirm this opinion. The Euro has been caught in a 200-300 pip range for the past several weeks and that trend is expected to continue this week as well.

It is a new day and a new week, albeit it is the last week of the month. This period is a period of no major,market-moving news and hence all the currency movements of this week will be more an effect of what has happened the last week and positioning for the future as well. Today, we have the German Ifo Business Climate data to be released and that is the only news of note for the Euro this week. The Euro has had a bright start to the day and the bullish bias is expected to continue for the rest of the day.
EURUSD Hourly
EURUSD Hourly
On Friday, the pair tried to break through the strong support at 1.1200 but it did not manage to and has since bounced off that area and sits at 1.1230 as of this writing. This area is expected to hold today as well with the top being capped by 1.1245 for now. Any approach towards 1.1200 would be an opportunity to go long with an ultimate target of 1.1350. The region of 1.1245-55 is a tough region to crack for now but we believe that this will ultimately give way for the move towards 1.1300. Considering that the volatility for this pair has been low, we expect this move to be more of a grinding move upwards rather than any quick push. So patience is required while trading this pair. As always, try and trade the edges of the range and keep your stop loss outside the range.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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