EUR/USD Price Analysis: Further range bound in store near term

• EUR/USD regains composure and surpasses the parity level.
• Extra consolidation appears favoured for the time being.

EUR/USD fades part of Thursday’s strong sell-off and manages to regain the area above the key parity level at the end of the week.

Further consolidation looks the most likely scenario in EUR/USD in the near term at least, always within the 1.0100-0.9900 range and ahead of the key ECB and FOMC events later in the month.

The breakout of the weekly high at 1.0090 (August 26) could spark further gains to 1.0202 (August17 high). Alternatively, the 0.9900 neighbourhood is expected to hold the bearish impulse for the time being.

In the longer run, the pair’s bearish view is expected to prevail as long as it trades below the 200-day SMA at 1.0794.

EUR/USD daily chart