- The euro initially pulled back against the US dollar yet again during the trading session on Wednesday but has found enough buyers to keep it somewhat afloat.
- With this being the case, I think you’ve got a scenario where traders will look at this through the prism of a market that is more or less going to be moving on to whatever it is the traders out there believe Jerome Powell will end up saying on Friday, from his speech at Jackson Hole.
- All things being equal, there are a lot of concerns when it comes to whether or not the Federal Reserve will actually loosen monetary policy, and that has cause chaos in other markets.
Technical Analysis
Top Regulated Brokers
The 1.16 level continues to be very important, and I will be watching that very closely. This is an area that is been important multiple times as both support and resistance, so it would not surprise me at all to see this market play out as one that will continue to react to it every time we get anywhere near it. With that being the case, I am very cautious about getting overly aggressive in this area because we have seen both buyers and sellers jump in, and of course you have to keep in mind that the 50 Day EMA sits just below, so that of course will offer a significant amount of support as well.
If we were to break down below the 50 Day EMA, then I think it opens up the move down to 1.14, where we had bounce from previously. That’s an area that has been important multiple times, so anything below there opens up the trapdoor do much lower levels. Conversely, if we were to break above the 1.1750 level, then it opens up a move to the 1.18 level where we had formed a bit of a “double top” previously. All things being equal, I think we remain very noisy between now and that speech on Friday from Jerome Powell.
Ready to trade our Forex daily forecast? We’ve shortlisted the best forex broker list for you to check out.