- EUR/USD edged higher on Monday amid some renewed selling around the USD.
- The set-up favours bullish traders and supports prospects for additional gains.
- The 1.1855 area might cap gains ahead of Jackson Hole Symposium on Thursday.
The EUR/USD pair edged higher through the early European session on Monday and refreshed daily tops, around the 1.1810-15 region in the last hour.
Given that the pair on Friday found some support near the 1.1760-55 horizontal zone, a move beyond the 1.1800 mark might be seen as a key trigger for intraday bulls. This coupled with the fact that oscillators on the 1-hourly chart have again started gaining traction support prospects for additional gains.
The constructive outlook is further reinforced by bullish technical indicators on the daily chart. Hence, some follow-through strength towards 200-hour SMA, around the 1.1840-45 region, now looks a distinct possibility amid the emergence of some fresh selling around the greenback.
However, investors might refrain from placing any aggressive bullish bets, rather prefer to wait on the sidelines ahead of the Fed Chair Jerome Powell’s speech during the Jackson Hole Symposium later this week. Hence, any subsequent positive move is likely to remain capped near the 1.1855-60 congestion zone.
On the flip side, the pair might continue to attract some dip-buying near the 1.1760-55 support area, which if broken will negate the positive outlook. The pair might then turn vulnerable to accelerate the fall towards testing sub-1.1700 levels, or monthly lows set August 3.
EUR/USD 1-hourly chart
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Technical levels to watch
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