Good day forex traders and readers.
Welcome to a midday update on the EUR/USD.
In the previous EUR/USD forecast we noted on the heavy fundamental overtone on the currency pair this week. Many speculations are going on regarding the tampering of quantitative easing and hence all eyes would be on the US FOMC statement and press conference this week.
Looking at the EUR/USD 4 hourly chart above we note that the currency pair is current trading in a tight range. The previously mentioned support and resistance lines of 1.3380 and 1.3240 remains.
We may expect the tight range to continue as traders await to observe ongoing developments this week.
It was reported by an index that US home builders are having the highest confidence in 7 years now as the economy becomes more conducive. This is likely to improve the prevailing sentiments.
Equities worldwide are mostly green as risk appetite increase on speculations that the upcoming US FOMC statement will likely favor continued quantitative easing.
Tomorrow brings us important economic releases such as the German ZEW Economic Sentiment. Furthermore the G8 meetings are ongoing and hence one must be prepared for any unexpected volatility.