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The EURUSD currency pair continued to remain trading sideways. However, price action remained broadly weaker.
The declines came amid a week that was dominated by the U.S. economic reports.
The FOMC held its meeting over the week. No changes were made to the short term interest rates but the Federal Reserve signaled a rate hike in September.
Elsewhere, economic reports from the U.S. saw the release of the ISM’s manufacturing and non-manufacturing PMI and the monthly payrolls report.
Data showed that while the ISM gauges of indicators slipped, the overall state of the U.S. economy remained strong.
The unemployment rate also fell to 3.9% during the month of July.
Technically, the EURUSD currency pair remains trading within the established range of 1.1730 and 1.1540.
Price action attempted to break the resistance level but failed to do so. As a result, price closd weaker but within the said range.
In the near term, we expect the currency pair to maintain this sideways trend.
A strong breakout to the upside is likely to come on fundamental developments.
Until then, the common currency could either remain trading sideways or risk posting a downside breakout.