FX.co ★ Hot forecast for EUR/USD on September 8, 2023

Judging by the market's behavior, the dollar's overbought condition has reached a point where there is simply no room for further growth. After all, the data on US initial jobless claims turned out to be significantly better than expected. In particular, instead of increasing by 10,000, the number of initial claims decreased by 13,000. Similarly, the number of continued claims decreased by 40,000, against a forecast of 27,000. The dollar only managed to edge up after this report. And at the opening of the Asian session, it completely lost all its modest gains. The market clearly needs a correction. And today is a suitable time for it, since there are no economic reports.

The EUR/USD decline has slowed down around the 1.0700 mark. As a result, selling volumes have decreased, and the pair has become stagnant followed by a succeeding pullback.

On the four-hour chart, the RSI technical indicator shows that the pair has left the oversold territory. This signal confirms a decline in the volume of short positions.

On the same chart, the Alligator's MAs are headed downwards, which corresponds to the price's direction. There is no change in the direction.

Outlook

The bearish scenario suggests that it is necessary to keep the price below the 1.0700 level. In this case, speculators may disregard the euro's oversold conditions, and the quote will move towards the June lows. As for the bullish scenario, several technical indicators suggest a possible recovery in the euro's exchange rate, where the quote may move towards the 1.0800 level.

In terms of the complex indicator analysis, we see that in the short-term period, technical indicators are pointing to a retracement stage. Meanwhile, in the intraday and mid-term periods, the indicators are reflecting a downward cycle.