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EUR/USD Forecast 5 Apr 2016

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EUR/USD Forecast 5 Apr 2016
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EUR/USD is unable to determine the direction in anticipation of FOMC minutes

The pair EUR/USD has met strong resistance, which doesn’t allow it to go above 1.14 however any weak report from the US can send the pair above this level.

On Monday, the pair EUR/USD remained trading in Friday's price range 1.1334 - 1.1437. The market participants are not able to determine the direction of the dollar in anticipation of FOMC minutes on Wednesday.

In the US, the factory orders index amounted to -1.7% (forecast was -1.7%, previous 1.2%) for February.

The head of the Federal Reserve Bank of Boston said that the stability of the US economy can help the Fed to stick to a more rapid pace of rate hikes.

Today the pair EUR/USD may try to test the level of 1.1366. If the pair manages to drop below this mark, we will see the movement of the pair EUR/USD to the 1.1330 area.

How to trade

The mark 1.1412 provides strong resistance for the pair while 1.1360 provides sufficient support for the pair EUR/USD. We would buy CALL options if the price rises above 1.1412. We would buy PUT options if the price falls below 1.1360.

Expiry time: 20:00 GMT

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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