EUR/USD Price Forecast – EURUSD to Trade Flat Ahead of Fed Meeting Minutes

EURUSD traded with range bound bias earlier yesterday but managed to see positive price action late in the day testing mid-1.13 handle over USD’s decline in the broad market. American market hours last night saw Dollar fall across the board with Dollar index which measures the strength of US Greenback against six major global currencies falling below $96.50well near weekly lows owing to cautious investor tone ahead of Fed meeting minutes update. There were no major headlines pertaining to change in current political climate in the U.S.A. this along with declining US Treasury yields during American market hours also added bearish influence to US Greenback in the broad market.

Brexit Optimism Underpins EURO Bulls

The overnight positive price rally helped EURUSD pair go back near monthly highs hit during the first week of February. However, the EURO lacked the strength to break past mid-1.13 handle and sustain positive price rally. This resulted in price action falling below 1.1350 handle during Pacific-Asian market hours but the pair has managed to hold its price action well above 1.1330 above which the pair saw steady price rally ahead of European market hours. Brexit optimism also added to EURO’s rebound last night but it also lacked the strength to induce a bullish breakout last night. Investor sentiment remains in favor or EURO bulls during Asian market hours but the pair has maintained a relatively neutral pace of price action so far. As of writing this article, EURUSD pair is trading near flat at 1.1338 down by 0.02% on the day.

Moving forward, clear lack of directional bias and high impact macro data update are likely to influence range-bound price action ahead of US market hours which will see the release of Fed meeting minutes. On the release front, European macro calendar will see the release of second-tier updates – German PPI and speech from ECB executive board member Peter Praet while US market lacks macroeconomic updates but will see release of Fed meeting minutes and a speech by FOMC member Robert Kaplan which are expected to provide directional cues for USD in short to medium term. Expected support and resistance for the pair are at 1.1300, 1.1265 and 1.1375, 1.1400 respectively.

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