EUR/USD consolidating in a tight range – FXStreet

FXStreet (Barcelona) - Thin trading has kept EUR/USD confined to a tight 1.0960-1.0990 range, notes Valeria Bednarik, Chief Analyst at FXStreet, with the pair now requiring a break above 1.1000 to gain further upside potential.

Key Quotes

“Generally speaking, the EUR/USD pair maintains a positive tone, as the 4 hours chart shows that the technical indicators are slowly aiming higher after partially correcting extreme overbought readings reached last Friday, following the extremely disappointing US employment report, whilst the 20 SMA gains a stronger bullish slope below the current price.”

“However, the 1.1000 level has proved strong several times during the past March, meaning the price needs to accelerate above it to confirm a bullish continuation, towards the 1.1050 price zone. Additional gains above this last, should lead to an extension up to 1.1120, 61.8% retracement of the February/March decline, alongside with confirming further dollar declines.”

“The immediate support comes at the 1.0950/60 price zone, and buyers will likely surge on approaches to the level, with a break below however, exposing the pair to a bearish move down to the 1.0900 figure.”

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