EUR/USD: Range bound, but heavy

by Admin

Despite range bound, the EUR/USD maintains a negative bias after yesterday failure to take 1.3100. The pair trades steady around 1.3000, and the lack of BOJ action overnight just supported the mild risk aversion sentiment for this Friday: stocks are down across the world although investors are on hold, as US Advanced GDP will be released in a couple hours.

The report is expected to show a strong 3.1% reading, which should feed risk appetite and favor gains in high yielders. However lately, the EUR has been unable to rally over greenback with positive US news, and if anything, a good reading prevented the pair from falling. A negative reading on the other hand, can exacerbate the negative sentiment and send the pair lower. 

The levels to watch in the short term are 1.2970/1.3040:  a break of any extreme should see the pair continuing at least 40 pips in the chosen direction.

View Live Chart for EUR/USD