EURUSD has been trending higher but the long-term time frame shows that price is near a long-term resistance level. The pair has been ranging between support at 1.0600 and resistance at 1.1500, which might be tested soon.
The moving averages appear to be oscillating so the range-bound action could carry on. Buyers might take price up to the top of the range while sellers could be waiting to short at the very top.
Stochastic is already in the overbought area, which means that the upside momentum could face soon. RSI is on the move up but is also nearing the overbought levels so there’s a chance that the ceiling could hold and push EURUSD back to the bottom of the range or at least until the middle.
There are no major reports due from the euro zone today and there were none released yesterday. Only medium-tier data such as German industrial production and trade balance are on the docket.
Price could find a clearer direction towards the end of the week with US retail sales data lined up and euro zone preliminary GDP readings also due. Fed head Yellen has a speech coming up tomorrow and this might have a strong impact on dollar action.
So far, Fed officials have been trying to downplay the odds of a March hike, possibly to prevent the dollar from rallying further. As Fed official Dudley mentioned, dollar appreciation could wind up hurting the economy since this puts additional downside pressure on price levels.
Downbeat remarks from Yellen could give EURUSD enough energy to move until the top of the range but the likelihood of additional ECB easing in March could keep stronger gains in check.
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