EUR/USD Price Forecast:
- EUR[1]/USD[2] remains rangebound ahead of Jackson Hole Symposium
- RSI[3] approaches overbought territory
- Price action[4] remains faithful to key Fibonacci[5] support
EUR/USD: All Eyes on Jackson Hole
After recovering from March 2020 lows, bulls trading EUR[6]/USD[7] dominated the market, with an impressive nine week rally, until coming into a wall of resistance at the psychological level[8] of 1.200 and the US Dollar[9] was able to regain a portion of its recent losses.
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Although the FOMC[11] minutes revealed that the Fed has no intention of tampering with rates in the near future, concerns surrounding the ballooning balance sheet and yield curve control remain. This draws our attention to the much anticipated Jackson Hole Economic Symposium, where Fed Chairman Jerome Powell will review the framework for monetary policy today at 13:10 GMT, which will likely set the tone for September.
Meanwhile, a resurgence of Covid-19 related cases in Europe, particularly in Spain, Italy and France, have once again confirmed that the pandemic is not yet over, diminishing hopes of a swift economic recovery.
Price Action Stalls at Key Fibonacci Support
After four consecutive months of gains, the EUR/USD[12] has stumbled into a key level of Fibonacci[13] retracement, diminishing the hopes of a bullish continuation[14].
From a technical standpoint, the weekly chart below highlights Fibonacci levels from two major moves. The first Fibonacci retracement[15] (pink) represents the move between the April 2014 high and the January 2017 low, while the second Fibonacci (purple) represents
