EUR/USD Price Forecast – EURO Consolidates Gains Ahead of UK Parliament Session

The EURUSD pair has maintained a consolidative price action since trading session opened for the week. While the price action has been subdued owing to investors caution ahead of today’s Brexit Plan B vote in UK Parliament and Sino-U.S. trade talks later this week, EURO bulls caught slight momentum post-European Central Bank President Mario Draghi’s speech where he reiterated his dovish view. However, this failed to have any impact as investors have already priced in ECB’s decision to adjust all of its instruments as needed to ensure that inflation continues to move in a sustained manner towards the goal set by governing council. The pair saw slight upward action as risk appetite was slightly higher in the broad market.

Caution Ahead of UK Parliament Session Limits Upside Move

This helped the pair hit new two week highs in American trading hours. Post hitting new highs, the pair has continued is range bound action in Asian market hours as Forex market is seeing mixed price action despite cautious investor sentiment in the broad market. As of writing this article, EURUSD pair is trading at 1.1437 up by 0.03% on the day. Broad-based US dollar’s price dynamics continue to have greater say in the pair price action in immediate future. However, range bound action is expected to continue ahead of today’s UK parliament vote. On release front today, the European calendar is silent for the day however, the US market is expected to see the release of CB consumer confidence data.

Today’s macro data is unlikely to have any major impact on price action and even if it did have little say, the price action is likely to favor Euro bulls as Consumer confidence data is forecast to see declines and this could add bearish influence to an already weak US dollar in the broad market. When looking from a technical perspective, the path with least resistance is to the upside as the price is well above 20, 50 and 100 MA’s in hourly intra-day and daily charts. Further momentum indicators RSI and Stochastic are moving with an upward inclination heading towards overbought region suggesting probability for upward price action is high in immediate and near future trading sessions.