No sign of rebound can be spotted; for the moment on EUR/USD, the immediate trend of the currency pair remaining negative following the heavy losses at the end of last week.
Recall that the Dollar US had grown stronger facing most forex currencies for unclear reasons as many US economic indicators came in disappointing and expectations of a pause in rate hikes the Fed backed off.
This week, the economic calendar will contain few elements likely to influence the price of the Euro Dollar, with in particular a public holiday; in the United States to start the week this Monday.
In this context, we will be watching closely the various interventions by members of the Fed this week. Indeed, most of the key economic indicators over the past month have been flat. published, and the Fed will enter its communications blackout next week, in preparation for the FOMC meeting in September.
In other words, if the Fed members wish to correct or steer market expectations; By their words, taking into account recent economic data, this week is the most likely window.
À In this regard, it will be recalled that the impact of any statements by Fed members this week will depend on their influence on market expectations. for upcoming FOMC meetings, which you can follow on the Investing.com Fed Rate Barometer.
Awaiting further development. ment or potentially influential statements, the evolution of the Euro Dollar could mainly depend on the technical factors.
Technical thresholds at; monitor on EUR/USD
À In this regard, it should be noted that the EUR/USD is facing a downturn; a key support around 1.0770, and a break below that would expose 1.07, then the May 31 low around 1.0635. Further down is the 1.05 area that could be directly targeted.
À the upside, the 1.08 threshold and the 200-day MA at; 1.0816 forms the first major hurdle, ahead of 1.09 and the 100-day MA at; 1.0919, then the major psychological level of 1.10.
Then the EUR/USD bottom trend will turn more bullish again, and 1, 11, 1.12 and the top of this year towards 1.1275 will be the first potential targets to be reached. consider.
Will the EUR/USD plunge continue this week? Beware of this support