At the Jackson Hole meeting last weekend, Chairman Powell’s comments pushed the euro up from around 1.16 to 1.1742. At the start of this week, selling followed, and when U.S. long-term interest rates fell in the New York market, the euro also dropped to 1.1603. This erased almost all of the earlier rise, making it a round trip.
As a result, the euro could not reach this year’s high of 1.1829 or the 1.18 level, showing again that the 1.18 area is a strong resistance. However, since the FRB’s stance of cutting rates was also confirmed, it is likely that the euro has returned to range trading.
The lower end of the range is around 1.1520, which is the 61.8% Fibonacci retracement level and also close to the 90-day moving average line.
Expected Euro-Dollar Range: 1.1570 – 1.1660 USD
Note: This information does not guarantee profit. Please make your own decision when trading.