EUR/USD Price Forecast – EUR/USD Trades Range Bound With Bullish Bias In Holiday Thin Market

The EUR/USD pair is on a steady rise above the 1.14 handle across Asian market hours today as the sentiment around the Euro was lifted by the renewed Brexit optimism and broad-based US dollar weakness, as markets brace for the Markit preliminary November PMI for the EU and the US due later today. The common currency picked up bids in early trades, despite holiday-thinned markets, as the Asian traders cheered the Brexit draft declaration agreed by the UK and the European Commission overnight. The declaration sets out their future trade relationship before the Brexit summit this Sunday. As of writing this article, EURUSD pair is trading at 1.1414 up by 0.10% on the day.

Positive Forward Guidance From ECB Helped EURO Gains Upper Hand

Moreover, the recent weakness in the US dollar across its main competitors, in the wake of concerns that the Fed may slow its pace of tightening amid economic slowdown fears, continues to keep the buoyant tone intact around the spot. Furthermore, the Euro also found support from the ECB Meeting’s Minutes, which showed that the central bank remains committed to unwinding its QE program this December, despite slowing Eurozone economic growth and inflationary pressures. Looking ahead, the Euro area flash manufacturing and services PMI reports will offer fresh trading impetus to the major while the Italian budget-related headlines will continue to influence the Euro in the coming days.

When looking from technical perspective, nothing has changed much except that the 1.1425-35 region has been reaffirmed as an immediate strong hurdle, which if cleared decisively might assist the pair to make a fresh attempt towards testing 50-day SMA, nearing the key 1.1500 psychological mark.  On the flip side, bearish traders are likely to wait for a follow-through weakness below the 1.1370-60 support area, below which the pair is likely to accelerate the fall towards the 1.1300 round figure mark before eventually heading back towards challenging YTD lows, around the 1.1215 region.