EUR/USD Price Forecast – Euro Bounces to Kickoff Week

The Euro has rallied significantly during the trading session on Monday to recapture the 1.17 level. The Euro had gotten a bit oversold, so this not a huge surprise to think that the market would bounce a bit, and the question at this point in time will be what happens during the Jackson Hole meeting? There are a lot of people out there trying to front run the idea of tapering, and of course statements coming out of that meeting will have a major influence on this.

EUR/USD Video 24.08.21

Ultimately, we have formed a series of “lower lows” and of course the “lower highs.” We are forming a bit of a wedge though, so that might be something worth paying attention to. Regardless, I do think it is only a matter of time before the sellers jump back into the market unless of course Jerome Powell does something to shock the market and suggest that tapering is an impossibility.

Either way, I would need to see signs of exhaustion to start selling again, as at this point, I think this is going to be written off as a simple bounce from an oversold condition. With that being the case, I think the market will eventually see clarity, but right now I think at this point in time this bounce will be healthy due to the fact that the market cannot go in one direction forever. Nonetheless, I believe that this is a market that will continue to be better off left alone for a day or two, at least until we get some type of impulsive move. This looks a lot like short covering to me at the moment.

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