Both euro and British pound ended the trading day slightly lower against the greenback but there is still no trace of any breakouts of the narrow trading ranges. The U.S. dollar received a boost from U.S. President Donald Trump’s pledge to announce a “phenomenal” plan on taxes within the next “two or three weeks”, but these comments were not enough to trigger a lasting bearish trend, at least not in the EUR/USD and GBP/USD. Rather, the price action in both currency pairs remained restricted to current support and resistance zones.
Amidst a thin-liquidity environment, the euro is still caught between 1.0715 and 1.0640 so there is nothing new to report.
The cable refrained from a direct test of 1.26 and reversed shy of 1.2585. With the 1.2475-support zone still being intact we focus now on a potential head-shoulders formation in short-term time frames. The pound may head for another test of 1.2550 before it is poised for a significant break below 1.2475/70. Let us be surprised.
And once again there are no major economic reports scheduled for release today. The only interesting reports, which may have a minor impact on the currencies, will be U.K.’s Industrial and Manufacturing Production at 9:30 UTC and University of Michigan Consumer Confidence at 15:00 UTC.
This week was characterized by low volatility and thus little chances for profitable moves. We hope for better trading opportunities and more profitable movements next week. Have a nice weekend.
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