EURUSD continues to trade sideways, and with both the Federal Reserve and the European Central bank getting ready to cut rates, it is hard to foresee any major price trend developing in this pair.
Over the last few months, the April and May low at 1.1105 have acted as support, while the March high at 1.1446 managed to block the price to trading higher in late June. I don’t think the price will be able to leave this range anytime soon, and while it is not my preferred trading style, I suspect traders will try to buy near the lower end of this range with stops below the lower limit of the range, and short-sell near the highs with stops just above 1.1446.
The nearest support level is the June 18 low, and traders might start to build a position around this level. However, trading ranges is not easy, and it is time-consuming. I prefer a break to the May low or the March high to turn bearish and bullish respectively.Don’t miss a beat! Follow us on Twitter.