EUR/USD Forecast: needing a catalyst for direction, not one at sight

The absence of European macroeconomic figures exacerbates range trading.
EUR/USD stuck to the 1.2360/80 region, but downside potential limited.

Valeria Bednarik FXStreet

Little is going on across the FX board this Thursday, with majors still confined to tight, familiar ranges. The greenback is ticking higher against most of its major rivals in the current European session, but gains are insignificant, while the yen remains the strongest against the dollar, anyway trading within a tight intraday range.

As for the EUR/USD pair, it trades around 1.2360, measly 20 pips below its daily high. There were no macroeconomic headlines coming from the EU, although the US will present multiple minor readings, including regional manufacturing indexes and the weekly unemployment claims.

The pair trades above its moving averages in the 4 hours chart, but below the 23.6% retracement of the last two weeks' rally around 1.2375, while technical indicators ease within positive territory, indicating diminishing buying interest, although not enough to confirm an upcoming bearish movement. It's unlikely that the mentioned US data can trigger a break of the current range, but rather sentiment could give the pair a directional boost. In the meantime, supports come at 1.2335, 1.2300 and 1.2265, while above the daily high of 1.2382, the next resistance is 1.2410, en route to 1.2445.

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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