EUR/USD Daily Fundamental Forecast – March 26, 2018
The EURUSD pair has been gaining in strength as the dollar weakens across the board since the last week. We have been seeing the pair trading within a large range and being volatile within it and though it is clear that the euro has been having the upper hand during most of the last few weeks, the bulls have not been able to generate enough momentum to stage a breakout.
Hence the pair continues to consolidate and trade within the range though it continues to look pretty bullish and as though it is only a matter of time before we see some kind of a breakout in the pair. There has not been much developments over the weekend to force the issue except for the fact that the politics in Italy is helping the parties to push towards the formation of a government over there and that is likely to help the pair to gain some strength.
The pair is currently trading above the 1.2350 region at this point of time but we believe that there continues to be some slight bullish momentum at this point of time which should carry the pair towards the highs of its range once again. Also, the pressure on the dollar due to the nationalistic policy followed by the current US administration and the threat of a global trade war has been adding to the pressure on the dollar and this is clear for everyone to see.
It is the first day of the week and hence the volatility, the economic news and data are all likely to be pretty less. But as we have been saying, there is some clear bullish momentum in the pair and as we head towards the end of the month, we are also likely to see some month end currency flows which is likely to add to the momentum in the pair and hence the coming days could see some interesting trading.