FX.co ★ Hot forecast for EUR/USD on August 23, 2024

The EUR/USD pair has slightly pulled back after breaking the local peak from December 2023. However, this movement is consistent with the upward trend's cyclical component.

In the 4-hour chart, the RSI technical indicator exited the overbought zone during the price retracement. Given that the indicator continues to move in the 50/70 range, this is a positive sign for further growth.

Regarding the Alligator indicator in the same time frame, the moving average lines point upward, aligning with the trend direction.

Expectations and Prospects

According to the theory of regrouping trading forces during a price retracement, a new round of growth of the volume of long positions on the euro is possible over time. In this scenario, the peak of the upward trend, around 1.1280, will become the target for buyers. As for the alternative scenario, it considers extending the current retracement until the price returns to the level of 1.1000.

The complex indicator analysis suggests a retracement in the short-term and intraday periods. However, the medium-term outlook remains bullish.