EUR/USD Stuck in a Narrow Trading Range Below 1.1400 Handle
The EUR/USD pair remained stuck in a narrow band around the mid-point of 1.1300-1.1400 handle as market participants continue to evaluate the possibilities of a Fed rate-hike in July.
Following a big up-surge of over 200-pips last Friday, the pair has failed to extend the bullish momentum and has repeatedly reversed from the vicinity of 1.1400 handle. On Tuesday, the pair reversed from 1.1380 despite of slightly better-than-expected composite Euro-zone final GDP print, showing 0.6% growth for the region in first-quarter of 2016.
In absence of any major economic releases from Euro-zone and from the US on Wednesday, the pair is likely to continue oscillating within this week's 65-70 pips trading range between 1.1390-1.1325 untill next week's widely watched FOMC meeting on June 14-15.
Technical levels to watch
Momentum above weekly highs resistance near 1.1390 is likely to get extended towards 1.1460-65 resistance, beyond which the pair seems could aim towards reclaiming 1.1500 handle and head towards 1.1530-35 resistance zone in the near-term.
Alternatively, decisive break below weekly trading range support around 1.1325-20 zone, is likely to trigger a corrective move towards 20-day SMA support near 1.1250-45 region, which if broken convincingly might accelerate the downward trajectory towards its next major support near 1.1150 area.