EUR/USD Daily Fundamental Forecast – August 3, 2017

The EURUSD pair moved higher over the last 24 hours and did threaten to break out briefly but was met by a large amount of selling at the highs and it managed to close near the middle of its daily range. This was basically a reply of the price action from the previous day and the template is likely to be repeated till we have some solid and fundamental news that is likely to push the pair in a specific direction. Right now, the price action is choppy with a bit of bullishness around.

Euro Likely to Face Strong Resistance

The day started off slowly and the pair was consolidating and trading within a tight range for much of the day and it was only later in the day that the action picked up. The big news of the day was the ADP employment report which came in at a slightly weaker than expected number of 178K though the number from the previous month was revised higher. This was not enough to change the fundamentals in any manner and the dollar weakened slightly across the board as a result of this data and we saw the pair move up by around 25 pips.

The slow action continued later and it was only close to the London fix that the action picked up again and we saw the EURUSD pair make a move towards the 1.19 region and it went as high as 1.1910 before it was met by a lot of selling and it closed the day below the 1.19 region at 1.1854. Now we know where the sellers are sitting in this pair and it would be key to break this region for the pair to move higher.

For today, all the attention is likely to be focussed on the pound and so, we expect some consolidation and ranging in the EURUSD pair. Some traders have begun to believe that the euro rally is a bit overstretched at the moment but with the NFP scheduled to be released tomorrow, we do not expect any specific large moves for today.