EUR/USD continues to move sideways, so, unfortunately, we don't have good trading opportunities. Maybe we'll have to wait for the price to escape from the current extended range before deciding to go long or short.
The pair rallied on Friday after the US Non-Farm Employment Change came in worse than expected at 199K versus 426K expected. The euro received a helping hand from the Eurozone Unemployment Rate which dropped from 7.3% to 7.2% as expected. Also, the Sentix Investor Confidence and the Italian Monthly Unemployment Rate reported better-than-expected data.
EUR/USD bounced back from today's low of 1.1285 also because the USD received a hit from the US Final Wholesale Inventories which registered a 1.4% growth compared to 1.2% expected.
EUR/USD Still Undecided
EUR/USD is trapped between 1.1386 and 1.1273 levels in the short term. Its failure to come back towards 1.1235 and lower to 1.1186 indicates strong upside pressure. Still, the 1.1374 level stands as a major upside obstacle. Only a valid breakout above 1.1374 and a new higher high could activate a bullish reversal.
On the other hand, a new lower low, a bearish closure under 1.1273 could open the door for a larger drop. Despite its extended sideways movement, EUR/USD cannot move sideways forever. Escaping from this range could bring great opportunities.
EUR/USD Forecast
A valid breakout above 1.1386 could announce a larger upwards movement and brings new long opportunities. On the contrary, dropping and closing below 1.1273 may announce a broader downside movement.
