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| EUR/USD four-hour chart, source:FXDD.com |
cf. [EUR] Rebounding Euro 2020 0821
cf. [EUR] Euro in the Correction 2020 0811
cf. [EUR] Euro, Long Bias and Preparing the Correction 2020 0804
cf. [EUR] Euro in the Correction 2020 0731
cf. [EUR] Still Rising Euro May Be Tested 2020 0724
Gjallarhorn got the Long position of euro in the futures market, CME. It records the loss because it was bought at the local peak.
But Gjallarhorn still has long bias to euro and recommends you buying euro.
One of the major currency pair EUR/USD has been fluctuating in Bollinger Bands since the end of July in the four-hour chart.
The currency pair is supported on the bottom band of Bollinger Bands and rebounded though the currency pair retreated to its 120 Exponential Moving Average.
There will be several attempts to exceed 1.20, EUR/USD pair fluctuating in Bollinger Bands while its trying. Fibonacci tells pair price 1.1629 is 38.2 percent fall from the peak, it doesn't seem to do though.
The market participants wait for FOMC Chairman Jerome Powell's speech at the Jackson Hole Symposium on Thursday, and the chart shows the moderate flow.
The market anticipates the dovish stance and it is expected that euro will get the trend after Powell's speech. Fed Chair is expected to speak Fed will tolerate more inflation in US economy. But someone analyses that the price already has reflected the dovish Fed stance and dollar's fall will be restricted.
If Powell's dovish speech doesn't satisfy the market enough, greenback may rise, Yonhap Infomax, economy news agency reported citing market analysts talk.
The conservative investors is recommended to get the position after the speech.
The top two economy entities, the United States and China talked about the trade by telephone and it supported the risky-on. The representatives from G2 spoke the advance in the talks.
Major German economy index, Ifo Business Climate recorded 92.6 better than expected 92.5 on Tuesday. It gave the hope of German economy's recovery.
The Conference Board reported on Tuesday that the Consumer Confidence Index in the US slumped to 84.8 and fell short of analysts' estimate of 93. But it had little to no impact on the dollar because of the waiting-for the Jackson Hole Symposium.
Meanwhile, Netherlands's bank ING forecasted euro's rise to 1.20 in one month. After this correction euro keeps upward rise due to the fundamental momentum. ING said the number of net dollar-position records minimum in eight years and it shows the negative outlook on the greenback.
But analysts at Danske Bank predicted euro's retreat to 1.12 in a half-year. They predicted the US productivity would surpass Eurozone's. And they added the excess liquidity in Europe will burden euro.
U.S. economy daily Wall Street Journal reported on last Thursday, European Central Bank officials supported the additional action to boost Euro economy. WSJ reported they said, ECB had the margin for the support yet.
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