Monday, August 21, 2017

EUR/USD Remains Range-bound

EUR/USD has remained range-bound for the past two weeks, and the drop of about 200 pips that has occurred up until now has been corrective.

That correction, however, does not appear to be over. I think that it is possible for the range to continue in the following days, since the economic calendar for this week seems rather devoid of news that could become a catalyst for major movements in either direction.

The closest support for the pair is around the 1.1700 level. A drop below that level and a breakout below the support trend line could lead the pair to 1.1600 – 1.1580.

A breakout above the resistance trend line would mean, I think, an acceleration of the move to the upside.