At the Jackson Hole meeting last weekend, Chairman Powell’s comments increased expectations of a September Fed rate cut, and the U.S. dollar weakened across the board. The euro had been struggling last week and looked like it might form a round top, but instead, it broke above the recent highs.
Depending on the results of the ECB meeting minutes to be released this week, the market may pay more attention to the difference between the Fed moving toward rate cuts and the ECB possibly stopping rate cuts.
The euro may try again to reach this year’s highest level at 1.1829. However, because of ongoing concerns about the European economy, it may be difficult to rise above that level. Selling near this point may be considered.
This week’s forecast range for EUR/USD: 1.1650 – 1.1800 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.