EUR/USD Price Forecast – Euro Rangebound Ahead of EU Area CPI Update

The EURUSD pair yesterday traded range bound and closed on a dovish note. The pair suffered a significant level of bearish pressure yesterday as US Dollar gained strength on the rebound in US T.Yields. However, the US GDP data saw a disappointing outcome preventing US Greenback from building up a bearish price rally. Shortly after the release of US macro data, EU calendar saw disappointing German macro data update. This resulted in the pair seeing a slide to three-week lows at 1.1213 after which the pair saw rangebound price action across American market hours.

Bullish Breakout Unlikely in Near Future

The pair saw consolidative price action slightly above 3-week lows during Pacific-Asian market hours. Increased risk appetite and optimism surrounding Sino-U.S. trade talks helped EURO gain some momentum ahead of European market hours. This helped EURO climb slightly higher during Asian market hours. However, Euro continues to see bearish pressure owing to German T.Yields which has remained in the pit so far this week. As of writing this article, EURUSD pair is trading at 1.1237 up by 0.15% on the day. Investors now await directional cues and short term profit opportunity today’s macro data updates. On the release front, both European and American calendars are highly active with multiple high impact macro data updates scheduled to release across the day.

European macro calendar will see the release of German retail sales data, French CPI & HICP data, German unemployment change, and Preliminary Euro area CPI data. US macro calendar will see the release of Core PCE Price index data, PCE Deflator data, personal spending data, Chicago PMI data, Michigan consumer expectations and consumer sentiment data, new home sales data and speech by FOMC members Kaplan and Williams. A better than expected EU area macro data and disappointing US macro data will help the Euro move back towards 1.1300 handle. However, the pair is unlikely to gain positive momentum in near future as it has declined below multiple price levels which acted as support limiting declines for the past few months.  US dollar will keep gaining on each instance of risk-averse trading adding further pressure on Euro. Expected support and resistance for the paire are at 1.1240, 1.1265, 1.1305 and 1.1215, 1.1200, 1.1175 respectively.

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