Market Overview

EUR/USD Forecast: Range-play Intact Ahead Of This Week's Important Macro Releases

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The EUR/USD pair extended its range-bound price action on Monday and held just above the 1.2300 handle, consolidating last quarter's strong gains of around 2.8 percent. With the European markets closed in observance of Easter Monday, holiday thinned liquidity conditions was seen as one of the key reasons behind the pair's subdued/range-bound price-action at the start of a new quarter/week. 

Investors now brace for this week's important market moving economic releases, including the keenly watched NFP, which should help determine the pair's next leg of directional move. A slew of important US economic data kicks off with the release of ISM manufacturing PMI and would be looked upon to grab some short-term trading opportunities later during the early NA session.

From a technical perspective, the pair remains confined within a broader trading range held since mid-January and hence, it would be prudent to wait for a clear breakthrough before positioning for any meaningful trajectory. Meanwhile, the 1.2285 area now seems to have emerged as an immediate support, which if broken is likely to accelerate the slide toward 1.2240 horizontal support before the pair eventually heads toward testing the 2-1/2-month-old trading range support near the 1.2200-1.2180 region. 

On the flip side, momentum back above the 1.2335-40 immediate supply zone could lift the pair back toward reclaiming the 1.2400 handle. A follow-through buying interest has the potential to continue boosting the pair further toward 1.2445-50 intermediate hurdle en-route the key 1.2500 psychological mark.

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Posted-In: FXStreetNews Eurozone Forex Markets

 

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