FX.co ★ Forecast for EUR/USD, August 24, 2021

Greetings!

In yesterday's articles on the main currency pairs, we have analyzed the results of the last week. Today. we will outline the main events of the current week, as well as pay attention to technical analysis and consider short-term trading periods. So, the main event of this week will be the Jackson Hole Economic Symposium. Central bankers will meet virtually for an annual gathering traditionally held in Jackson Hole in Wyoming. It is attended by prominent central bankers, finance ministers, academics, and financial market participants from around the world. Oftentimes the speeches of the heads of the world's leading banks give a signal to market participants about what approach to monetary policy a particular central bank will adhere to in the near future. Naturally, traders will be most interested in the speeches of Fed Chairman Jerome Powell and the President of the European Central Bank (ECB) Christine Lagarde. Traders are craving to hear Powell's statements about the possible upcoming reduction of the bond-buying program. The event will last for three days and it will start this Friday. On Friday, Jerome Powell is scheduled to give a speech.

Let's move on to today's economic news. Yet, today, the economy calendar lacks aby important macroeconomic reports. At 9:00 Moscow time, German GDP data was released. The figure exceeded the expectations. In annual terms, Germany's GDP expanded by 9.4% versus the forecast value of 9.2%. In quarterly terms, the growth totaled 1.6%, although economists had expected the figure to come in at 1.5%. At 17:00 (Moscow time), the US is going to unveil data on the Richmond Manufacturing Index, as well as new home sales.

Daily

As expected, yesterday, the euro/dollar pair managed to edge higher. however, many analysts think that this is a corrective rise. Nevertheless, the pair closed at the level of 1.1745. The pair may hover at the 1.1700 mark for some time. So, it is still too early to make a final conclusion about the downward scenario and subsequent fall below 1.1700. Today, the corrective rise of EUR/USD may continue with the targets levels of 1.1785 and 1.1800. A bullish divergence of the MACD indicator may signal an upward movement.

H4

On the 4H chart, the pair retreated to the previously broken support level of 1.1752. It is trying to return above this level. The black 89 exponential moving average acts as a reactance. It is located exactly at 1.1750. If bearish reversal patterns of Japanese candlesticks appear on the 4H or 1H charts below 1.1750, this will be a signal to open short traders with the targets near 1.1700. If the 89 EMA is broken and the pair consolidates above 1.1752, it is recommended to buy on a reversal to the 1.1750 level, but also with small profit near 1.1785 and 1.1795.

Good luck!