In the last couple of months, EUR had been trading in a tight range with major choppy consolidation at on both higher and lower end. The major reason for this was uncertain Eurozone economic condition and Brexit from the eurozone area.
Major eurozone economic contributor like Germany also released weak data.ECB also going to lower down its forward guidance in policy upcoming policy meeting. Most investor speculating their position on euro ahead major events.
Now move to the US where major economic indicator improving and Fed have maintained their rate hike status quo.
Also, US president trump has initiated positive move to talk with China over trade war which develops the positive market condition for investment-related activities in the US.
Last week US NFP and Unemployment rate comes robust and better than expected.
Dollar index loses its strength after fed chairman comments that future rate hike and policy stance will depend on market condition.
The Euro not able to make a strong move against the US Dollar compared to last month. Pair faces steep resistance near 1.1500 levels. The pair tries to break above this level multiple times but not get success to surpass it.
Euro is undervalued as compared to US dollar and positive and favorable condition from eurozone can act as a catalyst to euro.
If price breaks out from 1.1500 possible price target for came at 1.1530-1.1600. While lower end support comes at 1.1319-1.1320.
On daily charts, pair trading in a sideways trading channel with an upper end of the channel at 1.1501 and the lower end comes at 1.1267.
Price action wise pair came to the lower level and took support around 1.1290-1.1300 zone multiple times. Momentum indicator trading sideways and losing momentum near mid part of indicator window near 50 levels.
As per chart pair is in forming a base or its just retracement of recent fall is of matter of time.
Above level of 1.1500 pairs can face minor resistance near 1.1530 but this can be easily taken out as pair consolidating and breakout of range can filled order above resistance immediately.
Major support and resistance levels as below: