EURUSD: Contracting range between 1.0450 and 1.17 – Lloyds Bank

By FXStreet Research Team at Lloyds Bank, suggests that intra-day swings in EURUSD are violent in this very low liquidity environment.

Key Quotes

“Right now the EUR is under a little pressure from the 1.1245 highs set yesterday after seeing much weaker than expected industrial production. If equity markets stabilise we could see a grind back towards support in the 1.11-1.1055 region, but while that area holds the bias is still for a move towards stronger resistance at 1.1270, 1.1350 and 1.1465, before looking for signs of a more meaningful top to develop.

A breakdown through 1.1050 and then 1.0970 would suggest that a lower high within the broader range is already in place. Medium term we expect the contracting range between 1.0450 and 1.17 to continue through Q1 and potentially Q2.”
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Source:: FX Street