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EUR/USD Price Forecast – Range Bound Action Continues Amid Lack Of Directional Bias

By:
Colin First
Published: Mar 4, 2019, 09:20 UTC

the EURUSD pair is trading with slight bearish bias today but in reality, the scenario hasn't changed much from last Friday as both bulls and bears wage war for control over a clear lack of directional bias.

EUR/USD Price Forecast – Range Bound Action Continues Amid Lack Of Directional Bias

The EURUSD pair closed on a positive note during the last week of February, but a look the at daily chart shows that price action ended on a neutral/subdued note for Friday – the first trading session for the month of March. Following, a week filled with high impact events, risk appetite returned to the market on Friday as all geopolitical events and trade talks were done for the week and both sides of the currency pair saw a macro data update filled calendar schedule. As there was no news of either delay in imposing tariff or moving forward with imposing tariffs in form of an official statement from the U.S.A. activity was subdued to some extent. However, reports suggesting that tariffs are to be delayed in hopes of negotiating a trade deal started hitting the wires and this helped EURO aim to breach 1.14 handle which was yet another dead cat bounce as the pair managed to hit an intra-day high of 1.1410 handle but failed to sustain the rally near same.

All Eyes on Tomorrow’s Flash PMI Updates

As Wall Street performed positively on headlines hinting at delayed tariffs, US Treasury Yields boosted in the broad market and added strength to USD in broad market bringing the pair down from intra-day highs closing on Friday with 0.05% change in value. Dollar’s strength and momentum carried forward as trading session resumed in early Pacific-Asian market hours on Monday morning when trading session resumed for the week. The US Greenback’s momentum was also limited owing to the fact that US President Donald Trump expressed his dis-satisfaction against current strength of USD. As strong USD dominated the price action, the pair saw steady bearish price action but the decline was capped owing to positive investor sentiment supported by trade deal optimism.

The macro calendar schedule is silent on both sides of the currency pair today, leaving the momentum at mercy of broad market investor sentiment surrounding both currencies and headlines influenced momentum controlled price action. The main driving force in Asian and European market hours as expected to stem from the strength of government bond yields in Europe & the U.S.A. As of writing this article, EURUSD pair is trading at 1.1339 down by 0.32% on the day. Later in the day, any official comments or headlines relating to trading talks are likely to provide some fresh short term trading opportunities. PMI’s from both sides will continue to control price action on busy calendar scheduled tomorrow ahead of which a relatively subdued trading activity is expected to continue during today’s US & tomorrow’s Asian market hours. When looking from a technical perspective, while an immediate look may suggest bearish bias in the market, the pair lacks a clear directional bias with both sides continuing to wage for control of momentum for the second consecutive session today. Expected support and resistance for the pair are at 1.1300, 1.1260 and 1.1385, 1.1410/20 handles respectively.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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