EUR/USD Price Forecast – Euro Running Into Hesitation

The Euro has initially tried to rally during the trading session on Thursday but has given back the gains to show signs of hesitation. At this point, the market is likely to see a lot of noisy behavior and given enough time I think what we will probably see going forward is a complete reaction to the Federal Reserve statement coming out of Jackson Hole. Several members have suggested that inflation is running much hotter than initially thought, and therefore tapering bond purchases may be coming quicker than originally anticipated. That being said, the actual statement itself has not come out, so we still have the possibility of a bit of a risky move.

EUR/USD Video 27.08.21

We have been in a downtrend for a while, so it is not a huge surprise that we continue to struggle in this area, so I think that we will probably go looking towards the 1.17 level if we get any more hawkish talk, or perhaps more of a “risk off” type of situation. To the downside, if we can break down below there then it is very possible, we could go looking towards the 1.16 level which of course has been much more significant support in the past. On the other hand, if we were to turn around and break above the 1.1850 level, then we could go much higher. That would more than likely be a result of some type of dovish statement, so this point in time we are simply waiting around to see what central bankers have to say. With this being the case, I would anticipate that Jerome Powell will be very cautious, as he knows the entire world is watching him.

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