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EUR/USD Price Forecast – Range Bound Action To Continue As Trading Session Closes For The Week

By:
Colin First
Published: Mar 1, 2019, 07:48 UTC

The pair is expected to see a high level of action given flash PMI updates from both sides of Atlantic but price action is likely to remain range-bound as the forecast suggests that neither side has a strong update to force a breakout.

EUR/USD

The EURUSD pair yesterday saw sharp two-way price action. In the European market hours, the pair saw price move well above 1.14 handle supported by better than expected German CPI data and spike in German government bond yields. However, the upside was limited and the pair erased almost all of the gains made early in the day as US Dollar regained strength following upbeat US GDP data. Positive GDP data also influenced a spike in US Treasury Yields fundamentally supporting USD bulls on its rally during American market hours, but the decline was capped well above the mid-1.13 handle as Euro was fundamentally supported over a spike in German bond yields.

Flash PMI’s Eyed For Short Term Opportunities

Given the fact that Fed Chair Powell’s speech continues to reaffirm the dovish stance of the US Fed, there wasn’t much influence from Powell’s speech last night. The pair has since traded range bound above mid-1.13 handle across Asian market hours as investors await Euro and US macro data updates for short term cues as the trading session comes to close for the week. As of writing this article, the EUR/USD pair is trading at 1.1369 down by 0.12% on the day.  Price action is expected to remain highly volatile with healthy trading volume across European and US market hours as the macro calendar schedule is active across the day.

On the release front, the European macro calendar sees the release of Euro area CPI, French and German Manufacturing PMI’s and German unemployment data while the US calendar will see the release of the PCE Price index, PCE deflator, ISM Manufacturing PMI and Michigan consumer sentiment and consumer expectation data. The forecast suggests that the European calendar will see positive readings while the US calendar will see mixed reading which suggests that Euro is likely to gain upper hand in early trading session but gains are likely to be reversed in US market hours suggesting that rangebound price action is likely to continue across the day.

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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