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EURUSD Is Calm Early In the Week

By:
Dmitriy Gurkovskiy
Published: Aug 27, 2018, 14:21 UTC

On Monday morning, EURUSD was trying to recover. However, due to the lack of macroeconomic statistics, it reached stability and right now is moving inside a narrow trading range.

eur/usd concept

The basic fundamental catalyst for the major currency pair is the speech delivered by the US Federal Reserve Chairman Jerome Powell during the Jackson Hole symposium. Powell was pretty positive and optimistic and made a stand for the regulator’s current monetary policy relating to the key rate hike despite being criticized by the US President Donald Trump earlier last week.

Jerome Powell is in favor of “slow” tightening of the regulator’s monetary policy (in fact, he just continues the same policy as his predecessor, Janet Yellen), which is not a secret for investors. However, in this case, Powell is the person, who investors can obviously predict, but Trump is not. That’s why investors’ response to Powell’s speech wasn’t very clear.

The head of the US regulator said that the American economy remained strong and the macro statistics confirmed that. According to him, if the labor market remains strong and employment/income numbers continue growing, “slow” tightening of the monetary policy will be appropriate. However, the dynamic growth of income requires the same from the labor efficiency numbers.

EURUSD may remain quiet at the beginning of the last summer week due to the lack of significant macroeconomic reports. The numbers are expected on Wednesday-Friday, thus making the pair more active and volatile.

The H1 chart of EURUSD shows the uptrend. After updating the high, the price has started falling towards the support line at 1.1586. However, as long as this level isn’t broken, the instrument may yet resume growing to reach the resistance line at 1.1730. Still, if the pair breaks the above-mentioned support line, the price may fall into the downside projected channel and its support line at 1.1500.

EUR/USD 1H Chart
EUR/USD 1H Chart

This article was written by Dmitriy Gurkovskiy, a Chief Analyst at RoboForex

About the Author

Dmitriy has Masters Degree in Finance from London School of Economics and Political Science, and a Masters Degree in Social Psychology from National Technical University of Ukraine. After receiving postgraduate degree he began working as the Head of Laboratory of Technical and Fundamental Analysis of Financial Markets at the International Institute of Applied Systems Analysis. The experience and skills he gained helped him to realize his potential as an analyst-trader and a portfolio manager in an investment company.

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