FX.co ★ Hot forecast for EUR/USD on August 9, 2023

Although the dollar traded higher yesterday, the scale of its gains was so insignificant that we can confirm that the pair remains stagnant. This is quite expected due to the complete absence of influential economic releases. Moreover, there are no news or events that could impact the market either. Since there is no significant economic data today as well, the pair will likely remain stagnant. Especially since no one will want to take risks, as the US inflation report will be released tomorrow.

During the downward movement, the EUR/USD pair has almost reached the local low of the corrective cycle. However, the volume of short positions fell near this point, which resulted in a slight rebound.

On the four-hour chart, the RSI indicator is moving in the lower area of 30/50, thus reflecting bearish sentiment among traders.

On the same time frame, the Alligator's MAs are headed downwards, which corresponds to the direction of the corrective cycle.

Outlook

In this situation, we will notice a technical signal for the extension of the corrective cycle when the price stays below the value of 1.0900. In this case, the volume of short positions could significantly increase. As for the bullish scenario, this will be applicable once the price stays above the value of 1.1050. In this case, this could involve a step-by-step process of the euro's recovery, which can result in completing the current corrective movement.

The complex indicator analysis unveiled that in the short-term period, indicators are pointing to the ongoing pullback towards the 1.1000 level. In the intraday and medium-term periods, indicators show that the corrective cycle persists.