Forex News: Friday the pair moved in a 20 pip range and no economic data was released by the United States or Europe, making trading very difficult.
A 20 pip range is certainly not enough for proper technical analysis and holds almost no clues for future direction. Price has moved above 1.3830 but this cannot be considered a real break, especially because lately this level has been pierced several times. Our bias is neutral until a strong move occurs, which will most likely determine the pair’s next direction. For the moment 1.3760 is support and resistance sits at 1.3900.
The day is pretty slow in terms of economic releases and the only indicator worth mentioning is the US Pending Home Sales which offers insights into the American house market and has the potential to strengthen the US Dollar if it posts a higher value than the anticipated 1.0%. The release is scheduled at 2:00 pm GMT.
Market participants expected the UK Retail Sales to generate strong volatility but after a quick surge up, the move slowed and then reversed almost completely, making Friday another difficult day for intraday trading.
Friday the bulls made another attempt to break the level of 1.6820 but this resulted in a bounce lower, showing that resistance is holding, thus increasing the chances of a move lower. We don’t expect major moves today, mainly because no major news comes out, but the levels to watch remain 1.6820 as resistance and 1.6750 as support.
Price movement will be mainly affected by the US housing data and by the technical aspect of the market as the United Kingdom didn’t schedule any economic or financial indicator releases.