EUR/USD Stagnant

The EUR/USD is showing almost no sings of activity as low volumes and low volatility are leading the pair into sideways trading. The pair is gravitating towards a range of 1.23 to 1.22 as stock markets around the globe remain uncertain.

The pair is poised for a big move if the US stock market continues its decline to new lows. First bear target for EUR/USD is seen at 1.2050. Second target would be met at 1.19 and major bear target is seen at 1.14.

On the flipside, if we see a renewed optimism in the US stock market, the US dollar will follow suit and make new high against its peers. First bull target is seen at 1.25 and above that we could be in for many surprises.

Chart: EUR/USD H4