EUR/USD Price Forecast – EUR/USD Range Bound Ahead of Brexit Vote

The EURUSD pair managed to close positive yesterday despite risk off trading activity which was highly prevalent in global market owing to disappointing Chinese import and export data. The pair is trading range bound today with slight positive bias but major upside move is unlikely as investors are cautious impending key brexit approval vote in UK House of Commons. The outcome of Brexit vote today is expected to have strong influence on short term price action of both British Pound and EURO in broad market. While general opinion in market is that UK parliament will reject the vote today, unless the vote is approved against public expectations, EURO will note suffer any major change in price action.

Speech From Central Bank Members To Inspire Volatility

Following parliament’s vote on Brexit deal, No-Confidence vote on PM May is set to being which will also limit volatility in market to some extent. Market has already priced in rejection of brexit deal and wide belief is that PM May is likely to win the vote against her which will provide some level of fundamental support to EURO. US Greenback yesterday gained upper hand on broad based risky asset sell-off activity, however USD is still subdued in broad market as Partial shutdown in US government and Fed ‘s dovish stance on rate hike policy is weighing down Greenback in broad market. As of writing this article, EURUSD pair is trading at 1.1480 up by 0.12% on the day maintaining a relatively subdued action across Asian market hours.

On release front, European market will see the release of three second tier data – French CPI & HICP data, French GDP data & Euro area trade balance data of which French GDP forecast shows increase in monthly readings while other updates see data remain unchanged. On US calendar, market will see release of Trade balance and PPI data both of which see dovish forecasts when compared to last readings. Investors will look to US market hours for short term trading opportunity as today’s US session will see speech from ECB Draghi & FOMC member Robert Kaplan which is expected to bring high volatility to market. Expected support and resistance for the pair are at 1.1460, 1.1425, 1.1390 and 1.1485, 1.1511, 1.1565 respectively.