In general, today is a rather calm day due to almost empty macroeconomic calendar and a bank holiday in both the US and the UK.
Nevertheless, the market participants were somehow focused on Germany’s GDP data. According to the report, the eurozone’s largest economy dropped by 2.3%. At the same time, the single currency showed just a slight decline against the US dollar.
The euro/dollar pair is still trading within the wide range between 1.0775 and 1.1000. The pair tested the upper limit of the range for the third time and turned back. The main trend is likely to be downward. If the price consolidates below 1.0870, it may approach the levels of 1.0830-1.775.
However, today, we are likely to see Friday’s scenario. The market activity is expected to be tepid after a short-term revival at the beginning of the European session.
The pound/dollar pair has been almost inactive during the last four days. However, the quote managed to return to the support area between the levels of 1.2150 and 1.2180. It is quite possible that low activity may cause the accumulation that, in its turn, could lead to the acceleration. Thus, bears may benefit from the situation. Traders are recommended to pay attention to the range between 1.2140 and 1.2200. The price may try to break the limits of the range.
Thus, sell positions can be opened below 1.2140 with the targeted level at 1.2080-1.2000.
Buy positions can be initiated, if the price consolidates above 1.2200 with the target at 1.2250.
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