EUR/USD’s daily range was narrow thanks to a dearth of new trading cues, although there are likely to be plenty in the week ahead which is full of Federal Reserve speakers, with Treasury Secretary Janet Yellen also on the slate.
This is a huge contrast with the situation at the start of this year, when the Fed was tipped to cut faster and harder than any other developed-market central bank. The resilience of USEUR/USD has risen quite sharply from the highs of mid-April, breaking through a medium-term downtrend line in the process. While reversals needn’t be sharp, it’s no stretch to think that the pair might now be a little overextended and that Dollar buyers might well make progress above $1.
If the single currency can remain within the range that dominated between March 6 and March 21 then it may well be set for further gains. That range is bounded by March 7’s low of 1.08647 and March 8’s intraday peak of 1.09847.Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances.