Good day forex traders and readers.
It is almost midweek and I hope all is well for your forex trading! Let us all target to end this week green with pips 🙂
In the previous EUR/USD forecast we noted that the currency pair faced a strong resistance at 1.38. The sentiments improved for the Euro Zone due to better than expected inflation data. Caution was advised as the European Central Bank minimum bid rate would be due late week.
Looking at the EUR/USD 4 hourly chart above we note that the currency pair is ranging. It is below 1.38 and as I mentioned, it will take a significant push to clear the region decisively.
Due to the fundamental satiation this week, we may see a tight range lasting throughout mid week. 1.37 to 1.38 may be a probable short term range.
The Ukraine crisis has deescalated for now with Russia mentioning the lack of a need to send troops. Across the markets we are observing safe havens getting sold. Gold is down from it’s high.
As the European Central Bank minimum bid rate event is due towards the later part of the week, we may see the EUR/USD make little progress in either directions. Close monitoring must be done as an unexpected development may turn expectations upside down.
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