EUR/USD Price Forecast – Euro Sells Off Heading Towards Jackson Hole

The Euro has fallen a bit during the course of the trading session on Wednesday to test the bottom of the range for the Tuesday session. The Tuesday session formed a bit of a hammer, so at this point in time if we can break down below the bottom of the candlestick it would be a very negative sign and almost certainly send this market looking towards the 1.17 level and beyond. We have been trading in a nice channel for a while now, and it certainly looks as if we are struggling to break out of it.

EUR/USD Video 26.08.21

As we head into the Jackson Hole meeting, it should be noted that a lot of people are going to be paying close attention to the statement coming out of Jerome Powell, as there are a lot of questions as to whether or not the Federal Reserve is going to begin tapering by the end of the year. There have been a few Federal Reserve governors making headlines by suggesting that perhaps we are going to taper by the end of the year, but there has also been a little bit of a walk back in the past few sessions as well. In other words, as per usual the Federal Reserve has people guessing as to what it is they mean.

This is typically the time of year where central banks start to talk about what they plan on doing for the next year, so Jackson Hole has made major moves happen in the markets, especially as we start to get close to September, when traders are looking towards the liquidity picking back up as people return from vacation.

For a look at all of today’s economic events, check out our economic calendar.