EUR/USD Winds Down The Week and the Month

The euro weakened as we entered into the long weekend in many parts of the world but it was more a case of the strength in the dollar than a weakness in the euro. The EURUSD pair is likely to continue to remain weak for the rest of the day as well as many of the traders and the investors would not be around and so we can see some consolidation and ranging for the day.

EURUSD Still in Range

Not only are we heading into the end of a week and a long weekend but we are also heading towards the end of the month as well as the quarter and that is also one of the reasons why we are seeing some large month end and quarter end flows that are dominating the price action at this point of time with the pairs moving in different speeds with no sense of direction. The overwhelming theme has been one of dollar strength but we unable to attach much meaning to the same considering the fact that the pair has been ranging over the past few months.

As we have been repeatedly mentioning over the last few weeks, the pair is caught in a large range of around 250 pip between the 1.22 and the 1.2450 price regions over the last few weeks and this ranging has not shown any kind of a breakout during this period. The pair has threatened to break out on either side of the range many a time but so far, that breakout has not happened and the momentum has also been pretty much limited during this period, making the breakout quite difficult.

Looking ahead to the rest of the day, we are likely to see some tight ranges for the day as most of the traders would be away for the long weekend and the investor and traders who are there would not want to meddle with the markets as we wind down the week and the month.