EUR/USD Price Forecast – EUR/USD Range Bound amid Holiday Thin Market

EUR/USD has started the week with slight gains as dollar was weighed down owing to mix of negative factors including heightened concerns over a partial U.S. government shutdown and tension between the White House and the Federal Reserve. The market is relatively silent in Asian market hours today as majority of market is still closed on holiday celebrations. While Asian markets are open for trading today, mix of geo-political issues and concerns of economic slowdown kept lid on any serious bull move. Investors are expected to exercise cautious tone amid holiday thin market today as European markets are closed and USA is in dire situation owing to internal crisis.

Macro Data Updates To Provide Slight Volatility Towards End of Week

There is no high impact macro data releases scheduled for the day leaving no triggers to provide even short term opportunities which has also limited liquidity in market considerably. As of writing this article EURUSD pair is trading flat at 1.1402 up by 0.07% on the day. The pair is expected to continue trading with bullish bias in favor of common currency across today’s trading hours owing to broad based weaker US Greenback. On release front, investors focus now lies on US CB Consumer Confidence data and new home sales data scheduled to release during Thursday’s US market hours and German CPI data scheduled to release on Friday for short term opportunities.

When looking from technical perspective, nothing much has changed since trading session began for the week. The EURUSD pair could continue upward price action for rest of the week on broad based weaker USD but faces high level of resistance at 1.1460 handle which is unlikely to be breached ahead of New year eve owing to lack of necessary trigger and strength in market. Ahead of it, the pair has another resistance in the 1.1425 price zone. The 4 hours chart offers a neutral technical stance, with the pair bounding from its 100 and 200 SMA, both converging directionless around 1.1360 and capped by a flat 20 SMA around 1.1415. Technical indicators in the 4hr chart also remain steady near mid-lines reflecting the lack of interest supportive of range bound price action.Expected support and resistance for the pair are at 1.1360, 1.1315, 1.1280 and 1.1425, 1.1460, 1.1500 respectively.