FXEMPIRE
All

EUR/USD Daily Forecast – Euro Remains Rangebound Above 1.10 Handle

EUR/USD has fallen into a range in the early week just above the psychological 1.1000 level. With the Thanksgiving holiday coming up, a sustained break appears unlikely.
Jignesh Davda
EUR/USD

US Consumer Confidence Figures Slightly Softer than Expected

Consumer confidence in the United States declined for a fourth straight month with a reading of 125.5 for November compared to 126.1 in the prior month.

The figures suggest growth in the fourth quarter will be weak although there is general optimism for early next year and that holiday spending will be strong.

The release was slightly below analyst expectations and therefore did not have much of an impact on the exchange rate. There are several data releases scheduled during the North American session today. However, similar to the consumer confidence release, unless there is a significant deviation from the analyst estimate, EUR/USD is not likely to fluctuate much on the back of them.

Further, with the several market closures starting on Thursday, in observation of the Thanksgiving holiday, volatility is likely to decrease even further.

Technical Analysis

EUR/USD has been trading in a tight range between roughly 1.1005 and 1.1025 since the European open on Monday. The pair is under a bit of pressure in the early day today, but it would be surprising if the downside caught momentum.

I think a big level for EUR/USD falls at 1.0989. This marks the current November low. There will likely be some stops accumulated below it, but the question remains if the markets will make a run for those stops or if buyers will try and defend the area.

The pair trades heavy overall, despite the low volatility. Yesterday, buyers failed to protect a support area that consists of a horizontal level as well as a rising trendline that originates from the October lower.

EURUSD 4-Hour Chart

The upside seems quite limited. A big hurdle will be 1.1025 which has capped the upside several times already. If it manages to get above there, there is a confluence of resistance at 1.1047. This reflects the 50 and 100 moving averages on a 4-hour chart.

Considering the holiday this week, the current conditions are probably suitable for short-term traders. However, it doesn’t seem to make sense establishing a swing position at this stage. As such, the pair may struggle to follow through even if it makes a range break in the session ahead.

Bottom Line

  • EUR/USD trades in a tight 20 pip range in the early week
  • With the holiday in the second half of the week, a substantial move in the pair appears unlikely.
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US