News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/8B8hqHahm1
  • The US Dollar finished off an eventful week after CPI and retail sales injected volatility into markets. FOMC is now in the Greenback’s sights as taper talks linger. Get your market update from @FxWestwater here: https://t.co/MHi0lfQ93j https://t.co/4XetwYAaNd
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/ZZRLV0Wkea
  • The Nasdaq 100 index has likely formed a bearish Gartley pattern, which hints at further downside potential. Negative MACD divergence on the weekly chart suggests that upward momentum may be fading. Get your market update from @margaretyjy here: https://t.co/GkMEkVA7YR https://t.co/E1vyCMVt6K
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1G4lMu https://t.co/2TpkkUu7Hg
  • Tesla boss Elon Musk is seemingly running the cryptocurrency market single-handed this week with his tweets prompting a massive sell-off before today’s sharp rally. Get your market update from @nickcawley1 here: https://t.co/qGci02osOP https://t.co/Yp24Sakrfl
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/LDP3HlN4A3
  • GBP/USD on the front foot to close the week. Bulls aim for YTD peak, while EUR/GBP range is maintained. Get your market update from @JMcQueenFX here: https://t.co/neGBchlJ0O https://t.co/KME51FSF0D
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCrRwD https://t.co/7w5jodyzj0
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/L3LPCph2ST
Euro Dollar Outlook: EUR/USD Flirts With Fibonacci Ahead of Key Economic Event

Euro Dollar Outlook: EUR/USD Flirts With Fibonacci Ahead of Key Economic Event

Tammy Da Costa, Markets Writer

EUR/USD Price Forecast:

EUR/USD: All Eyes on Jackson Hole

After recovering from March 2020 lows, bulls trading EUR/USD dominated the market, with an impressive nine week rally, until coming into a wall of resistance at the psychological level of 1.200 and the US Dollar was able to regain a portion of its recent losses.

Visit the DailyFX Educational Center to learn about psychological levels and more

Although the FOMC minutes revealed that the Fed has no intention of tampering with rates in the near future, concerns surrounding the ballooning balance sheet and yield curve control remain. This draws our attention to the much anticipated Jackson Hole Economic Symposium, where Fed Chairman Jerome Powell will review the framework for monetary policy today at 13:10 GMT, which will likely set the tone for September.

Meanwhile, a resurgence of Covid-19 related cases in Europe, particularly in Spain, Italy and France, have once again confirmed that the pandemic is not yet over, diminishing hopes of a swift economic recovery.

Price Action Stalls at Key Fibonacci Support

After four consecutive months of gains, the EUR/USD has stumbled into a key level of Fibonacci retracement, diminishing the hopes of a bullish continuation.

From a technical standpoint, the weekly chart below highlights Fibonacci levels from two major moves. The first Fibonacci retracement (pink) represents the move between the April 2014 high and the January 2017 low, while the second Fibonacci (purple) represents the short-term move, plotted between the February 2018 high and the March 2020 low.

Currently, the 61.8% retracement level continues to hold strong at a level of 1.18244, in anticipation of today’s economic event. In addition to this, the Relative Strength Index (RSI), is hovering around 70, a possible indication that the pair may be approaching overbought territory.

EUR/USD Weekly Chart

EUR/USD Weekly Chart

Chart prepared by Tammy Da Costa, IG

EUR/USD Falls Below 55- Period MA

From a short-term view, the four-hour chart below highlights that the EUR/USD has fallen below the 55-period moving average (MA), another possible indication that the bulls are struggling to maintain control.

The area of confluency formed by the 31.8% retracement of the long-term move (1.17307) and the 61.8% retracement level mentioned above, are holding strong as support, but a break below may provide confirmation that the trend may soon reverse.

EUR/USD 4 Hour Chart

EUR/USD 4 hour chart

Chart prepared by Tammy Da Costa, IG

Client Sentiment

Euro Dollar Outlook: EUR/USD Flirts With Fibonacci Ahead of Key Economic Event

IGCS shows that, at the time of writing, EUR/USD client sentiment remains bearish, with 61% of retail traders holding short positions. We typically take a contrarian view to crowd sentiment and the fact that clients are net short, suggests that prices may continue to rise

--- Written by Tammy Da Costa, Market Writer for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES