Forex News: Range-bound Trading Amid a Lackluster Fundamental Scene
Forex News: Friday we saw mixed price action and yet another move into resistance that resulted in a bounce lower. The US Consumer Sentiment survey posted a lower than expected reading but the US Dollar still gained against the Euro and overall price remained in range-mode.
Price bounced several times at 1.2280 resistance and this suggests that we will see moves lower before bullish price action can resume. For today we expect to see a slow and ranging session, confined within the channel created by 1.2280 and 1.2195. A break of the 50 period EMA will make 1.2100 the next target but it will probably take more than one day to reach it.
Today the Eurogroup Meetings will take place in Brussels but other than that, the fundamental scene is calm and without major economic data.
Friday the pair made another attempt to break the previous high located at 1.3942 but this resulted in a perfect bounce lower, thus establishing the level as strong resistance for the future.
The pair showed several times that it is overextended and the last bounce at 1.3942 is indicative of an extended move to the downside. The first target for today will be 1.3820, followed by the 50 period Exponential Moving Average. If the bulls take price higher from the current level and break 1.3942, we don’t expect strong moves above it.
The Pound will not be affected today by economic data so the technical aspect will take center stage.
Written by: Bogdan Giulvezan
The article above is based on the writer’s 8-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.