The EUR/USD pair failed to capitalize on Friday’s attempted intraday bounce. As US banks will not open today due to Presidents’ Day, the pair is likely to consolidate its price in the opinion of Haresh Menghani from NDDFX.
“The pair seems to have entered a bearish consolidation phase and was seen oscillating in a narrow trading band through the Asian session on Monday. Given that the US banks will be closed in observance of Presidents’ Day, the pair seems more likely to extend its sideways consolidative price action amid absent relevant market moving economic releases from the Eurozone.”
“The market focus now shifts to this week’s other important macro data, including the flash Eurozone PMI prints, which should provide a fresh impetus and play a key role in influencing the pair’s near-term momentum.”
“Extremely oversold conditions warrant some caution before positioning for any further depreciating move. Immediate support is pegged near the 1.0800 round-figure mark and is followed by the lower end of a one-year-old descending trend-channel, currently near the 1.0785-80 region.”