- Summary:
- EUR/USD tight ranges continue as the market await the Core PCE data later in the trading week. The US dollar gained some in the last 24h.
The tight ranges in financial markets are illustrated by the recent price action in the EURUSD. Basically, the main pair part of the FX dashboard is unchanged in the last two weeks, with the 1.2170 level acting as a pivotal one.
On its way to the upside, the pair met resistance at 1.2170, and now the area acts as support. No less than three times it bounced from it, and so that is the level bears may want to see it broken before going short. In the absence of a move below 1.2170, the bias remains bullish.
The ECB delivered some dovish statements this week. The head of the Bank of France suggested that the ECB has no intentions of tapering its asset-purchases, although the pressure mounts in the face of other central banks already planning to do so (e.g., the Bank of Canada, the Reserve Bank of New Zealand).
Tomorrow, the Core PCE data in the United States is the only piece of economic data able to move markets. The entire week so far was light in terms of important data, as reflected in the price action.
EUR/USD Technical Analysis
Bears may want to wait for a close below 1.2170 before going short with a stop at the recent highs and a take-profit set using a risk-reward ratio of 1:2.
EUR/USD Price Forecast
Follow Mircea on Twitter.