EUR/USD – The pair is likely to sit in a tight range for now

My FX List
May 2, 2023

Long Position

Take Profit: 1.1100
Stop Loss: 1.0940
Timeline: 1-2 days

Short Position

Sell Stop: 1.0980
Take Profit: 1.0900
Stop Loss: 1.1100

Looking at the price charts, we can see that the EUR/USD pair was able to rise from the low of 1.0520 in March to a new high of 1.1092 in April and there was a bullish trend happening for the last few weeks. As we observe the pair moving a little over  the 50-period MA, the MACD is slightly above the neutral point. After establishing an ascending channel, the pair is now at a middle level. The EUR/USD pair is most likely to keep trading in a narrow range for the day due to the Labour Day holiday. The publication of important economic data this week, including the US NFP data and upcoming flash inflation numbers for Europe, will have an impact on the pair as well. 

On Monday morning, the pair was spotted drifting sideways as attention switched to the ECB and Fed, as we await the announcement of important interest rate decisions.  Although no decisions were made in April, analysts are still uncertain about the course of action that the ECB and Fed will take at this meeting. However, they continue to believe that the banking crisis could put the Fed under pressure, leading to a 0.25 rate increase followed by a deliberate pause. Analysts are more optimistic for an ECB rate increase of 0.25 because the European economy appears to be performing better than the US. 

Author My FX List