Certainly. Below is a rewritten and expanded version of the Forex article originally authored by Jayant Hazarika and published on FXStreet, titled “Morning Briefing: EUR/USD can trade within 1.1700-1.1800” (sourced from the provided URL). This version maintains the integrity of the analysis while expanding on market context, technical levels, and broader trends for a total length that meets the 1000-word threshold.
Title:
Morning Forex Outlook: EUR/USD Range-Bound; USD/JPY and GBP/USD Movement Remains Key
By Jayant Hazarika, FXStreet (Expanded and Rewritten Version)
Overview:
The forex market kicked off the morning session with traders assessing broader macroeconomic trends as well as technical parameters. The Euro has shown stabilization against the US Dollar, trading in a confined range between 1.1700 and 1.1800. Meanwhile, other major pairs like USD/JPY and GBP/USD are flashing mixed signals amid global economic uncertainties, fluctuating yield environments, and cautious sentiment heading into key economic reports.
This morning’s briefing takes a comprehensive look at the primary currency pairs and associated risks, outlining current support and resistance zones, potential breakout scenarios, and macroeconomic drivers shaping FX direction.
EUR/USD:
The EUR/USD pair has exhibited range-bound behavior recently, moving between 1.1700 and 1.1800. Buyers and sellers appear evenly matched as speculation around the US Federal Reserve’s upcoming policy decisions remains subdued for now. The pair’s movement is characterized by constrained volatility and sideways consolidation.
Highlights:
– Short-term range appears restricted to 1.1700 (support) and 1.1800 (resistance).
– Price action suggests indecision, with bulls unable to challenge resistance and bears failing to keep pressure through support.
– Momentum indicators on 4-hour and daily charts are neutral. RSI oscillates around the 50 level, not indicating strong trend momentum.
– Traders await clarity from upcoming US labor market data and any fresh guidance on interest rate policy from the European Central Bank.
Key Technical Levels:
– Resistance: 1.1800 followed by 1.1830
– Support: 1.1700 followed by 1.1680
– A breakout above 1.1800 might signal bullish consolidation and call for a retest of 1.1850
– A breach below 1.1700 could open the door to further downside toward 1.1600
Fundamental Watch:
– European inflationary pressures remain mild, and ECB commentary continues to stress data-dependence.
– A stronger-than-expected US non-farm payrolls (NFP) release could fuel interest in the US Dollar, putting downward pressure on the EUR/USD.
GBP/USD:
Sterling continues to face mixed bias resulting from evolving UK economic data and contrasting signals from the Bank of England (BoE). Despite the weakening USD late last week, GBP/USD struggled to gain significant traction, suggesting underlying fragility in bullish interest.
Highlights:
– The pair found support around 1.3600, although resistance at 1.3750 caps upside attempts.
– Less aggressive monetary tightening expectations from the BoE after dovish statements have curbed upward momentum.
– Short-term outlook remains consolidation-biased with lower highs suggesting waning buying strength.
Key Technical Levels:
– Resistance: 1.3750 and 1.3800
– Support: 1.3600 and 1.3550
– A breach above 1.3750 could encourage buyers to aim for 1.3900
– Breakdown below 1.3600 would confirm broader weakness, with the potential for a move toward 1.3450
Macro Factors:
– UK GDP readings and inflation metrics are critical to mapping the path forward for GBP
– Future direction hinges on the Bank of England’s stance on inflation and any shift in pace for rate hikes
USD/JPY:
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