EUR/USD Daily Fundamental Forecast – March 29, 2018

In what should be termed as a surprise, the EURUSD has fallen back to its usual range which we have been seeing since the beginning of the year. In this period, the pair has been caught in a 250 pip range and though we have been seeing a lot of volatility within this range, the pair has been unable to break through this range and this has only added to the frustration of the bulls.

EURUSD Back in Range

We say that the bulls are frustrated due to the fact that the bulls seem to be in control of the pair and they have been helped by some strong incoming data from the Eurozone over the last few months but they have been unable to generate the momentum that is needed to bring about a breakout. They have tried hard and they have tried their best and whenever the pair has been pushed towards the highs of its range and it looks as though the pair might breakout sooner or later, it has been met with some strong selling.

This is what we have been seeing since the start of the week as the dollar started the week on the backfoot due to the imposition of tariffs on the Chinese goods but just when it appeared as though a breakout was imminent, we have seen the dollar gain in strength across the board as the risks and the uncertainties over a full blown trade war has receded and this has caused the EURUSD pair to fall back into its usual range and now it trades just above the 1.23 region as of this writing.

Looking ahead to the rest of the day, we do not have any major economic news or data from the US or the Eurozone and so we can safely assume that the ranging and consolidation within the larger range is going to continue for the short term as well.