FX.co ★ Kemie | EUR/USD

EURUSD Price Forecast: The price movement of the EUR/USD currency pair is the subject of this analysis and discussion. It's an age-old dilemma. Waiting to sell at a high can result in missing a profitable trading opportunity, leaving traders often empty-handed. If there's a reason to sell, the time to act is now. Current forecasts suggest that the EUR/USD pair may decline. The pair is trading in a descending channel, heading for the 38.2% retracement level at 1.17103. A break below this level could lead to further declines toward the 1.16125-1.16303 support zone, which is considered strong support. The 4-hour chart shows that the pair has rebounded from the 23.6% retracement level at 1.18101, shifting in favor of the dollar, signaling a potential price decline. The European Central Bank (ECB) has begun easing its pandemic emergency purchasing program, lowering bank deposit and government bond yields, while U.S. interest rates remain elevated. The EUR/USD pair has been stuck in this consolidation range since Friday. The price remains trapped in a consolidation range between the 1.17299-1.17524 support and the 1.17634-1.17649 resistance.

A break below the 1.16964-1.16979 support is noteworthy, as a breakout could either signal a potential upside or a potential downside reversal. If the 1.17299-1.17524 support holds, the price could continue to rise to at least the local high at the 1.17964-1.18519 resistance zone. However, even with a potential double top formation, the price could still approach the $11 level. The overall decline in the second half of the week is due to uncertainty regarding the Federal Reserve's next steps. While the meeting is still some time away, the Jackson Hole symposium could see important decisions being made, as it has in the past.