EUR/USD Price Forecast – Euro Continues to Grind Higher

The Euro rallied a bit during the trading session on Monday, as we get back to work from the weekend. This kicked off the week on a slightly positive tone, which is particularly interesting considering that we have the Jackson Hole Symposium coming later this week, and the speech from Jerome Powell. If he continues to suggest loose monetary policy, that might be enough to finally make the Euro break out. The 1.20 level above looms large and will almost certainly attract the attention of central bank planners at the ECB.

EUR/USD Video 25.08.20

To the downside, I believe that the 1.17 level will continue to be important and attract a lot of attention. Ultimately, this is a market that will eventually find its way higher if things stay the same. However, you should keep in mind that the market got significantly overdone and therefore it makes sense that we would have to kill a little bit of time in this general vicinity in order to build up the necessary momentum, and perhaps even confidence to go higher.

We are tilting to the upside though, so it does show that the market still prefers to go higher more than anything else. Even if we break down below the 1.17 level, there is likely a significant amount of support in the form of the 50 day EMA which is painted in red on the chart, and even more so at the 1.15 level underneath which of course is psychologically and structurally important.

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