The EUR/USD remains in a range bound trading ever since the European Central Bank cut its Interest rate to a record low of 0.15% making the Euro currency weak against all its rivals.
Meanwhile, the greenback also remained under pressure after the Fed gave no indication of when interest rates could start to rise at the conclusion of its two-day meeting on Wednesday. In addition, the Fed’s forecast of where interest rates might reach in the long term fell from 4% to 3.75%.The central bank cut its bond purchases by $10 billion a month, to $35 billion, saying there was “sufficient underlying strength” in the U.S. economy to continue tapering.
Technically, weekly bias remains neutral and i will be suggesting a range trading strategy should be applied when currently trading this currency pair. So i suggest buying the dips or bottom around 1.35300, 1.35119 and 1.35127 supports and also selling the rips or tops at 1.36400, 1.36600, 1.36700 psychological zones.
A clear break below 1.35026 supports ( June 5 low) would resume further fall in the pair to 1.34000/1.3300 psychological zones. However a clear break above 1.36765 resistance ( June 6 high) would resume further rise in the pair to 1.39900/1.39910. Key economic indicators investors would be taking a close watch on in the coming week are U.S Core Durable goods, CB Consumer Confidence, New Home Sales, Existing Home Sales, German Flash Manufacturing PMI, German Ifo Business Climate and German Prelim CPI y/y.