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EUR/USD Forecast 24 Apr 2014

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EUR/USD Chart 24 Apr 2014
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The Euro keeps trading within tight ranges

As the week progresses, the Euro still can not get out form recent ranges and seems stuck between 1.38 and 1.3850. At the current juncture we are forecasting that the price will remain in tight ranges, so the best would be to buy calls on an approach to the 1.3810 area.

The price action from today started with the German IFO institute data doing out stronger than expected which propelled the single currency to above 1.3840, however that spike higher was quite short lived and the next move was rumored to have been triggered by geopolitical concerns.

As the European morning unfolded and we headed for the opening of New York desks, harsh statements from Russian authorities about the intervention of Ukrainian military in Eastern Ukraine have triggered a flight to safety with the US dollar and the Japanese yen being the biggest beneficiaries.

US durable goods orders have rebounded markedly by 2.6%, with the ex-transportation figure rising by 2%. Meanwhile new weekly jobless claims have disappointed with the number coming out at 329,000 instead of expectations for 310,000. While the level is still low, it does not bode well for a marked labor market recovery.

Looking to tomorrow's key data points, it is worth mentioning that the calendar is completely empty on both sides of the Atlantic save fro the UK, which releases Retail Sales, but those numbers are not going to impact the EUR/USD binary options forex pair.

The charts are saying it all - the main support level reiterates to be building in the 1.3790-95 area, while the price action remains quite murky as minor bids which we are looking at are building in the 1.3810 area which yesterday's US session low.

On the topside the picture is not in the slightest different from yesterday, with the main focus tilting towards the 1.3850 area. While positive news in the past couple of days have failed to keep the Euro's momentum elevated, this might still bring a slow rise without news, which could be much more prudent in the current environment.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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