- EUR/USD is now testing downward trendline resistance at 1.1750 ahead of the Jackson Hole Symposium.
- Federal Reserve Bank of Kansas City arranges the Jackson Hole Symposium this week.
- Forex trading market participants may look to sell trades below the $ 1.1750 level today.
The EUR/USD closed at $1.1743 after reaching a high of $1.1751 and a low of $1.1691. The pair reversed its course and started surging on Monday amid the recent weakness of the US dollar due to poor-than-expected macroeconomic data. The EUR/USD is now testing downward trendline resistance at 1.1750 ahead of the Jackson Hole Symposium.
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US Dollar & Economic Data Review
The selling pressure around the US dollar accelerated after the risk sentiment of the market improved. The US Dollar Index, which measures the greenback’s value against the basket of six major currencies, fell and reached 92.9. That’s adding to the rising price of the currency pair EUR/USD.
On the data front, at 12:15 GMT, the French Flash Manufacturing PMI remained flat with the expectations of 57.3 in August. The French Flash Services PMI also remained in line with the projections of 56.4. At 12:30 GMT, the German Flash Manufacturing PMI dropped in August to 62.7 against the projected 65.1 and weighed on the single currency Euro that capped further gains in EUR/USD.
In August, the German Flash Services PMI surged to 61.5 against the anticipated 61.0 and supported the Euro, pushing EUR/USD further higher. At 13:00 GMT, the Flash Manufacturing PMI declined in August to 61.5 against the projected 62.0 and weighed on the single currency Euro that capped further gains in EUR/USD.
The Flash Services PMI remained in line with the projection of 59.7. At 18:33 GMT, the Consumer Confidence from August remained in line with the forecast of-5. From the US side, at 18:45 GMT, the Flash Manufacturing PMI fell in August to 61.2 against the anticipated 62.4 and weighed on the US dollar and added more gains to the EUR/USD currency pair.
In August, the Flash Services PMI also declined to 55.2 against the projected 59.1 and weighed on the US dollar, which pushed EUR/USD higher. At 19:00 GMT, the Existing Home Sales rose to 5.99M against the predicted 5.82M, supported the US dollar, and capped a further rise in EUR/USD.
Pfizer and BioNTech received approval from the US FDA
The market mood improved a little after Pfizer, and BioNTech’s vaccine received full approval from the US FDA. The health agency said that the decision to approve the vaccine for people above 16 came after a study on 40,000 people revealed that the vaccine provides 91% efficacy against the coronavirus. This news eased virus woes circulating in the market regarding global economic recovery and pushed the riskier asset EUR/USD higher on board.
Jackson Hole Symposium in Focus This Week
The Federal Reserve Bank of Kansas City arranges the Jackson Hole Symposium. It’s an Economic Policy Symposium, held in Jackson Hole, Wyoming, which is accompanied by central bankers, finance ministers, academics, and financial market participants worldwide.
The main event of the Symposium will be the keynote speech of Federal Reserve Chairman Jerome Powell on Friday, as it will provide the market with hints about the monetary policy decisions that will be taken at the September meeting.
EUR/USD Price Forecast – Daily Technical Levels
Support Resistance
1.1705 1.1765
1.1669 1.1787
1.1646 1.1824
Pivot Point: 1.1728
EUR/USD Technical Analysis: Eyes on Jackson Hole Symposium
The EUR/USD price forecast remains bearish as the pair gets rejected below the 1.1750 resistance level. On the bullish side, the next resistance prevails at the 1.1751 level. At the same time, a continuation of an uptrend could extend its price towards 1.1805 and 1.1854 resistance levels.
On the 4 hour timeframe, the downward trendline extends resistance and could push the pair lower to 1.1700. Thus, the closing of candles below this area supports the strong odds of a selling trend continuation.
The EUR/USD pair has gained support at the 1.1706 level that’s extended by a 50 day EMA (Exponential Moving Average – Red Line). On the other hand, the oscillator indicator Stochastic RSI is still in the buying zone. Therefore, we should wait for the RSI to cross below the 50 levels before entering any sell trade.
Therefore, Forex trading market participants may look to sell trades below the $ 1.1750 level today. The initial targets are likely to be at $ 1.1706 and $ 1.1650 levels. Alternatively, buy trades can be taken above the $ 1.1751 level to target $ 1.1805 and 1.1854. All the best!
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