EUR / USD price analysis
- EUR / USD unchanged after Jackson Hole.
- Euro tests the main technical levels.
- IGCS undecided because traders are equally divided.
EUR / USD BASED
The opening of this week did not have the dramatic effect of the previous reopening of Jackson Hole, as markets remained relatively modest after closing on Friday. Along with the UK bank holiday, which could lead to a decline in volatility during earlier trading, Fed Chairman Powell was highlighted on the weekends. fool attitude towards narrowing, which is now largely data-dependent – proving to be more exhausting than other Fed officials. Mr Powell once again pushed inflation problems to the side, reiterating that they were likely to be temporary, while key PCE figures on Friday, which are expected to come, did little to support the hawks. The COVID-19 delta variant has been a major concern, remaining at a higher level, thus supporting the Federation’s decision to suspend the restriction immediately.
NEW COVID-19 WORLD CASES:
European consumer confidence in August was broadly in line with estimates, but industry sentiment was better than expected, linked to producer confidence and accounting for around 40% of the economic sentiment indicator.
Source: DailyFX economic calendar
This week Non-Agricultural Payroll (NFP) the data are crucial for QE narrowing speech and can have a significant impact EUR / USD the pair should differ from the actual data estimates. Today in German inflation (see calendar below) is the focus of a broader predecessor Euro core inflation figures are expected tomorrow.
Source: DailyFX economic calendar
From ECB Francois Villeroy de Galhau, Governor of the Banque de France, said low interest rates would remain and that there were no signs of a tightening of the PEPP at the forthcoming September meeting. Analysts closely monitored the differences Federal Reserve and ECB restrictions, but Powell takes the terrible stance mentioned above, but it is still combative. It is clear that the Fed will reduce QE before the ECB, but timing and structure are key. If further detailed guidance is only published, the future trend in the markets will be clearer.
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EUR / USD TECHNICAL ANALYSIS
EUR / USD Daily schedule:
The chart was compiled by Warren Wenket, IG
Although macroeconomic factors are relegated to the background of Friday’s unemployment data, technical ones are expected to take the lead. The psychological level kl 1.1800 is under testing and may be important if prices go above this accession area. The August recovery is around 23.6% Fibonacci level (1.1680) has been strong in the fading dollar. Consolidation (sideways) may take place this week as traders wait for key economic data. Short-term trading may be preferred during this period, as levels can fluctuate between 20 days (purple) and 50 days (blue). Mothers – without surprising macroeconomic announcements. A break above or below these short-term support and resistance zones can open up space pricing to retest the August slumps (1.1680) and vertices (1.1900) respectively.
The medium-term support trend line (black) has also been breached above for the first time since mid-August, and should the couple keep their heads above this support trend line, 1.1900 seems very likely.
The bullish divergence (green) exhibited, Relative Strength Index (RSI) has opened as expected as the oscillator moves above the midpoint 50, indicating an ascending momentum.
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The IGCS shows that there is a clear shortage of retailers at present EUR / USD, with 51% of traders currently holding short positions (as of this writing). In DailyFX, we usually take the opposite view of crowd sentiment, as the difference is marginal, the short-term signal remains confusing.
– Written by Warren Venketas for DailyFX.com
Connect and follow Warren on Twitter: @WVenketas