EUR/USD Price Forecast – EURO Rangebound Near 1.1200 Handle

The EURUSD pair yesterday a saw positive opening for the week. However disappointing EU area macro data updates and Brexit woes put bearish pressure on the common currency. This caused the pair to lose early gains and trade flat during mid to late European market hours. While disappointing US retail sales data and prevalent risk on investor sentiment underpinned EURO bulls to some extent, US Dollar gained strength in the global market in the latter half of the day pushing the pair below 1.1200 handle. US Dollar gained positive influence from better than expected ISM Manufacturing data updates.

USD Pushing For Further Declines Consolidating Hold Over Bearish Price Rally

However, the pair failed to create a true bearish breakout. Investor sentiment still retains a great level of risk on tone influenced by upbeat Chinese macro data and optimism surrounding Sino-U.S. trade talks. This resulted in the pair seeing a range-bound price action trapped within range of 1.1210 and 1.1190 price handles throughout Pacific-Asian market hours. Following yesterday’s disappointing EU macro data, the spread difference between US & German government bond yield is once again widening in Euro negative manner. As of writing this article, the EUR/USD pair is trading at 1.1201 down by 0.10% on the day. Given bearish fundamentals in the current market scenario balancing out influence from positive investor sentiment, the pair is likely to continue range-bound price action in immediate and near future trading sessions.

There is little to no chance for EURO to see upside breakout today. Meanwhile, investors are on the lookout for macro data updates for short term directional cues and profit opportunities ahead of European market hours. EU calendar will see the release of PPI data while the US calendar will see the release of core durable goods order data. There is also a speech by ECB’s Peter Praet which is also eyed by investors for short term cues. A dovish tone by Praet during his speech could literally cement USD’s grip over price action and push the pair well below 1.1200 handle paving way to test new 2019 lows. Expected support and resistance for the pair are at 1.1175, 1.1130, 1.1100 and 1.1210, 1.1245, 1.1280 respectively.

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