The euro is likely to remain range-bound against the US dollar in the near term as traders await crucial developments on geopolitical and monetary policy fronts, according to Rabobank Senior FX Strategist Jane Foley. EUR/USD is expected to trade around key technical moving averages with limited upside potential as markets digest ongoing uncertainty around a possible US-Iran nuclear agreement and upcoming American economic data releases that could reshape Federal Reserve policy expectations.
The pair’s movement will largely depend on how forthcoming US indicators influence market pricing for Fed rate decisions, while geopolitical headlines around Iran negotiations add another layer of volatility risk. Traders and brokers should prepare for choppy sideways action rather than strong directional moves, with resistance levels likely to cap any euro gains against the dollar.
FXnCO Insight
Position for range-trading strategies on EUR/USD rather than directional breakouts until US data provides clearer Fed guidance or geopolitical developments force a revaluation of dollar safe-haven demand.
Source: FXStreet