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FX.co ★ Hot forecast for EUR/USD on August 9, 2024

Hot forecast for EUR/USD on August 9, 2024

Despite slightly increased volatility, the situation in the currency market remains generally unchanged. The dollar continues to trade around the levels reached in the middle of the week. This situation will likely not change until the middle of next week. Investors are waiting for inflation data from the United States, which will provide an answer to the question of the Federal Reserve's next steps. Moreover, Fed officials are trying to calm the markets by stating that inflation targets have still not been met, implying that no rapid easing of monetary policy should be expected. From this, it can be assumed that a reversal will begin mid-next week, and the dollar will noticeably strengthen.

Hot forecast for EUR/USD on August 9, 2024

The volume of short positions on the EUR/USD pair decreased after touching the support level of 1.0900, which led to a retracement, even though the price locally breached the level.

On the 4-hour chart, the RSI indicator was temporarily below the average level of 50 but then returned above it. This movement indicates a decline in the volume of short positions.

Regarding the Alligator indicator on the same time frame, two of three MA lines are intertwined, indicating a stagnant phase.

Expectations and Perspectives

The price must settle below 1.0900 by the end of the week to support the correction. Otherwise, the level will continue to act as support, which could lead to the price fluctuating within the range of 1.0900/1.0950.

The comprehensive indicator analysis signals a stagnant phase in the short-term and intra-day periods.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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