Yesterday, the PMI results from European countries were better than expected, so the euro rose to 1.1662. However, it could not reach the previous day’s high of 1.1674 and then lost strength. Later, the U.S. PMI also came out stronger than expected, and the euro fell back to 1.1602, showing heavy resistance on the upside. Since the U.S. jobs report on August 1, the euro returned to high levels, but during this time it formed a round top, suggesting a possible peak.
The euro was bought because of expectations of a U.S. rate cut. But even if Powell gives a soft message today at Jackson Hole, the euro’s upside is likely limited. If Powell shows a careful stance, the risk of the euro moving down is larger.
Euro–Dollar expected range:1.1520 – 1.1660 USD
Note: This is not a guarantee of profit. Please make your own trading decisions.