The Euro (EUR) inched lower against the US Dollar (USD) on Wednesday, dragging the price of EURUSD to less than 1.1380, holding a tight range for the 10^th consecutive day. The Technical bias remains bullish because of a Higher High in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded near 1.1376. A support may be noted around 1.1345, the intraday low of yesterday ahead of 1.1335, the horizontal support area as marked in the following daily chart. A break and daily closing below the 1.1335 support area could trigger the correction wave, validating a move towards the 1.1250 zone.

On the upside, the pair is likely to face a hurdle near 1.1464, the intraday high of yesterday ahead of 1.1471, a major horizontal hurdle on higher timeframes. The technical bias will remain bullish as long as the 1.1218 support area is intact.

US Budget Statement

The U.S. government posted a US$108 billion budget deficit in March, more than double the amount from the same period last year, the Treasury Department said on Tuesday. The government had a deficit of US$53 billion in March of 2015, according to the Treasury’s monthly budget statement. Analysts polled by Reuters had expected a US$104 billion deficit for last month.

Accounting for calendar adjustments, March would have shown a US$102 billion deficit compared with an adjusted US$89 billion deficit in March 2015. The current fiscal year-to-date deficit was US$461 billion, up 5 percent from a US$439 billion deficit this time last year. Receipts last month totaled US$228 billion, while outlays stood at US$336 billion.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair appears to be a good strategy once the above mentioned range is broken.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.