EUR/USD Price Forecast – Caution Ahead of Fed Update Continues To Inspire Rangebound Price Action

The EURUSD pair started the week on a positive note but experienced two-way price action yesterday despite relatively calm trading activity. The pair saw steady upside price action across Asian and European market hours as EURO bulls found fundamental support from US Greenback’s weakness in the broad market owing to dovish Fed expectations and unexpected positive readings in EU trade surplus. This resulted in the pair hitting new two week highs at 1.3359 in European trading session. However, later in the day US Dollar rebound in the broad market resulting in the pair declining from intra-day highs.

Macro Data Updates Eyed For Short Term Gains

However, US Greenback is still subdued in the broad market as investors have taken a cautious stance ahead of tomorrow’s Fed meeting and this has resulted in relatively low trading volume since the trading session began for the week. This cautious investor sentiment has resulted in rangebound price action with price action trapped well within 1.13 handle so far this week. As of writing this article, EURUSD pair is trading flat at 1.1347 up by 0.10% on the day. Moving forward, investors are on the lookout for macro data updates for short term profit opportunities. Both EU & US calendar see the release of second-tier macro data updates today.

On the release front today, the European calendar will see the EU area’s wages data and ZEW economic sentiment data along with a speech by ECB’s Peter Praet and German ZEW current conditions and economic sentiment data While US calendar will see the release of factory orders data. When looking from a technical perspective, the pair shows a clear lack of directional bias in immediate and near future trading sessions. To the upside, the pair faces strong resistance near 1.1329, 1.1300, 1.1296/95 price handles while support to the downside is found near 1.1367, 1.1388, 1,1419 price handles respectively.

Please feel free to let us know what you think in the comments below.