EUR/USD – The pair may keep on consolidating for a while
Bullish View
- Take Profit: 1.0965
- Stop Loss : 1.0850
- Timeline: 1-2 days
Bearish View
- Sell Stop : 1.0890
- Take Profit: 1.0835
- Stop Loss : 1.0950
Last Friday, we saw the pair price recovering after positive US PCE numbers were released, suggesting the possibility of a rate hike during this month. Earlier, the pair price dropped to 1.0836 which was the lowest in 2 weeks and then we saw it go up and hit 1.0930 on Friday like mentioned. There is not much happening for the pair as of now as there are no key economic data releases at the moment. So, the pair is likely to keep on consolidating for a while without any clear trends.
The US traders will be taking a break from trading due to independence day celebrations and hence the starting week of the 2nd Quarter of the year will go on without much market action. European and US manufacturing PMIs are the only key economic data releases concerning the pair but their impact won’t be that huge as well. Another key data release to look forward to is the fresh US Job numbers which will be out on Friday.
Watching the 4H price charts, we can see the pair price drifting at the 61.8% Fibonacci Retracement level and the 50-period MA. It also shifted little above the 1st support level of Andrews pitchfork indicator. We are also seeing the ADX fall and hit the lowest level since 13th June. Adding the low trade volume amid the US holiday, the price action will be limited with more consolidation on the line.