EUR/USD Price Forecast – EUR/USD Rangebound Ahead of UK Parliament Meeting

The EUR/USD pair traded had a subdued start for the week yesterday. While the pair saw price action take on upside move in Asian and early European session, the gains were limited as investors were cautious ahead of today’s UK parliament meeting and held back from placing any major bets. Mixed macro data from European economic calendar didn’t have any visible impact on the price action of the pair, however, the upside move saw strong resistance near 1.127 handle post which the rally entered rangebound price action. The rally was mostly supported and influenced by weak USD owing to lingering influence from Friday’s mixed macro data outcome. But the US Dollar gained strength in late European market hours following the release of upbeat US macro data.

UK Parliament Vote Eyed For Directional Cues As Macro Data Forecast Hints At Neutral Readings

The pair saw USD bulls attempt to drag the pair back to 1.1200 handle but lacked the strength to influence a dovish price rally resulting in rangebound price action near the mid-1.12 handle. The rangebound action continued to hold steady in Asian market hours and is expected to continue relatively flat price action in European market hours as investors await updates on UK parliament session for directional cues and are unlikely to place any major bets ahead of same. As of writing this article, EURUSD pair is trading at 1.1260 up by 0.11% on the day. Investors now await economic calendar updates for short term profit opportunities ahead of UK parliament session and this is expected to keep the price action highly volatile in late-European and early-American market hours.

On the release front today, EU calendar remains silent aside from release of Q4 French Non-Farm Payroll while US calendar will see the release of core CPI update and speech from FOMC member Brainard ahead of UK parliament’s vote on Brexit deal. French & U.S. macro data are unlikely to have a visible impact on price action as forecast hints at neutral/unchanged readings. When looking from a technical perspective, today’s breakout would influence a directional bias that is likely to dominate price action in the market in immediate and near future. Given the fact that spread difference between German & American 10-year spread difference is widening and UK parliament is likely to vote against PM may’s deal the breakout is likely to result in favor of USD unless comments which follow parliament meeting hints at solid proceedings towards Brexit delay. Expected support and resistance for the pair are at 1.1230, 1.1200, 1.1175 and 1.1285, 1.1300, 1.1325/38 handles respectively.

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