The euro and the pound sterling continue trading sideways. Although on Friday, the euro was gaining in value, it remained within the same range. Today, the single currency may inch up amid the US durable goods orders data. On Friday, economists foresaw a rise of 0.3%. However, during the weekend, the forecast was revised due to mounting concerns about economic recession in the US. Now, the indicator is expected to decline by 0.3%. In other words, consumer activity, which is the main driver of the US economy, is likely to slide. Let us focus on the trading charts. The euro/dollar pair is hovering within the range of 1.0500/1.0600, locally touching one limit after another without violating the range. Since the sideways movement is still intact, traders are considering the possibility of a rebound from the upper limit of the range. If the expectations come true, the quote may slow down, displaying bearish sentiment. At the same time, traders suppose that the pair may break the range. The volume of long positions may surge if the price consolidates above 1.0600 on the four-hour chart. Meanwhile, the pound/dollar pair stagnated within the sideways channel. The pair has been hovering within this channel for two weeks already. Near the upper limit, the price formed a narrower channel. Fluctuation within the range is reflecting traders’ uncertainty and may cause an accumulation process. Under the current conditions, stagnation near the upper limit may cause acceleration. Buy orders could be initiated if the price consolidates above 1.2340 on the four-hour chart. This fact will point to the end of the flat movement. Traders may consider sell opportunities if the price settles below 1.2250 on the four-chart with the target at 1.2200-1.2150.
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