Forex News: Friday’s price action was choppy, with a slightly bullish bias; resistance was touched but the pair lacked the determination to break it. The U.S. Consumer Sentiment survey came out better than anticipated but this only created a brief US Dollar reaction.
Price is drifting between support and resistance without conviction and without a clear bias. The 50 period Exponential Moving Average is mostly flat (very slightly angled downwards), thus confirming that the market lacks proper direction. Today we expect mostly a ranging session, but the US Dollar looks weak, affected also by political unrest in the U.S., so a break of 1.1775 may trigger additional upside but to a limited extent. To the downside, 1.1713 – 1.1700 remains a strong support zone, which we don’t expect to be broken today.
The Dollar and Euro both have a lacklustre economic calendar for today, so the technical aspect will be the deciding factor for the pair’s direction.
The pair showed some big swings Friday, breaking resistance first, then support, only to finish the week in the middle of the horizontal channel. The U.S. Consumer survey had a positive impact on the greenback but the effect was soon nullified.
Price is trapped inside the horizontal channel created by 1.2900 resistance and 1.2850 support. Until we see a clear and strong breakout, the pair will probably show back and forth movement, inside the range. Both oscillators are lacking momentum, thus they are not showing a clear signal, but the 50 EMA is angled down and this tilts the balance slightly towards the bears.
The United Kingdom hasn’t scheduled any economic data release for today and this fact will probably contribute to a slow trading session.