Euro May Stay in Range

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Euro May Stay in Range
Euro May Stay in Range

Euro May Stay in Range

The euro may trade in range until the start of the U.S. session on Monday as there are no fundamentals due for the whole Euro region, plus it may have to break its limited boundaries within which it is currently trading in the early hours of the Asian session on Monday.

The pair is currently trading at 1.3275 where a move above its last week’s high at 1.3295 could take it to 1.3321, breaking of which could show 1.33345. On the downward side, it would get a good support at 1.3243 from which it could bounce back at its current price level, and if not then its next support would be 1.3215.

The pending home sales data for the U.S. is due today and would be released at the start of the U.S. session, where one sided data could cause the pair to move in either direction and get out of range.

Crucial Start for the Pound

Being bullish sounds good, but expecting a much better outcome from its vital economic indicators sounds even better. The U.K. economy would unveil its Net Lending to Individuals data in the early hours of the London session that is expected to grow to 1.4B from its previous reading of 1.0B. Provided that the lending increases, this could certainly push the pair up as it would indicate that the money supply in the economy is increasing where people are demanding more loans in order to invest or for their expenditures.

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Currently, the pair is moving at 1.5387 and a move below 1.5360 could take it down to 1.5325, below which buyers may enter heavily at the 1.5290 level. However, on the other hand, a sustainable move above 1.5405 would open the doors for the pair to test 1.5427 and 1.5450.

Significant Gains for the Yen

The Japanese yen gained more than 100 points against the euro, as well as the U.S. dollar on Friday where the bears made the pairs EUR/JPY and USD/JPY bearish and are currently trading just above their strong support levels at 130.03 and 97.85 respectively.

The retail sales are to be released in an hour or so for the Japanese economy, where satisfying numbers may result in further plunge in these two pairs. However, the BoJ Governor is due to speak on Tuesday where traders are eyeing further easing measures, as this would be a high time for the bulls to enter the market where there are fundamental and technical support levels.