FX.co ★ Hot forecast for EUR/USD on July 31, 2024

Today's Federal Open Market Committee meeting is not only the day's main event, but it will also determine the dynamics of market developments for the entire month ahead. Everything will depend on the statements made by Federal Reserve Chair Jerome Powell. However, there is little doubt that Powell will almost explicitly announce the beginning of monetary policy easing in September this year, which will contribute to the U.S. dollar's prolonged weakness.

The volume of short positions on EUR/USD decreased after the pair reached the support level of 1.0800. As a result, there was a price rebound, followed by the pair's stagnation around the base of the corrective cycle.

On the 4-hour chart, the RSI indicator is moving in the lower area of 30/50, indicating that the bearish bias persists in the market.

Regarding the Alligator indicator on the same time frame, the moving average lines point downward, corresponding to a downward cycle.

Expectations and Perspectives

Today, speculators' main focus will be on the information flow, which will undoubtedly lead to increased volatility. As for technical analysis, the 1.0800 level will serve as support, enabling the euro to gradually recover relative to the current correction. The bearish scenario will come into play only after the price stabilizes below the 1.0800 level.

Complex indicator analysis indicates a price rebound from the 1.0800 level in the short term. Indicators are reflecting a downward cycle in the intraday period.