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EUR/USD Daily Fundamental Forecast – August 21, 2017

By:
Colin First
Published: Aug 21, 2017, 03:36 UTC

The EURUSD pair continued to consolidate and trade within a tight range on Friday as there were not many fundamental drivers to drive the prices in any

EUR/USD Daily Fundamental Forecast – August 21, 2017

The EURUSD pair continued to consolidate and trade within a tight range on Friday as there were not many fundamental drivers to drive the prices in any specific direction. The pair has been trading on either side of 1.17 for the whole of last week and it has not yet shown any inclination to move in any specific direction as yet but with the focus for this on the Jackson Hole meeting, we expect a bit more volatility in the upcoming week as the things dry up on the economic news front.

EURUSD Continues Consolidation

Looking back to Friday, the prices were tightly locked within a range as the dollar tried to regain back some of its lost strength but the euro proved to be up to the fight. Also, there was a lot of choppy action in the markets as the early part of the day was dominated by the increase in global risks but the stock markets chose to shrug off the risk during the second half of the day which helped the dollar to recover during the latter half. But the euro proved to be up to the task and it continues to trade easily above 1.1750 as of this writing.

EURUSD Hourly
EURUSD Hourly

We believe that this week should give the push that the euro bulls are waiting for. Not much of the market expects Draghi to spell out any major policy change in his speech at Jackson Hole but we also believe that he cannot afford to be dovish as well as the economic data are there for everyone to see. He would not be able to speak contrary to the data that is present and considering the positive speech that we expect him to make, we also expect a correspondingly bullish move in the euro for this week.

Looking ahead to the rest of the day, as is expected on the first day of a week, we are very light as far as the economic calendar is concerned and hence with the lack of data, expect some more consolidation and ranging with a bullish bias in the EURUSD pair.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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