Fundamental Analysis
The EUR/USD currency pair has seen recent gains, driven by market sentiment surrounding U.S. monetary policy. The expectation that the Federal Reserve may cut interest rates in September and November is fueling bullish momentum. U.S. economic data, particularly inflation reports, have shown stabilization, supporting this outlook. The release of the FOMC meeting minutes on Wednesday, August 21, could create volatility depending on the tone regarding future rate cuts.
In the Eurozone, mixed economic data and ongoing challenges create uncertainty, yet the Euro has held strong above key levels. Business activity data from the Eurozone, scheduled for Thursday, August 22, will be critical in assessing the region’s economic health.
Technical Analysis
Technically, EUR/USD broke through resistance at 1.1010 last Friday and continues to hover above this level. Key resistance levels for the week are at 1.1065, 1.1104, and 1.1146, while support levels are positioned at 1.1010, 1.0961, and 1.0910. The pair’s current upward trend is backed by bullish technical indicators, though some oscillators suggest overbought conditions, signaling caution for traders.
Outlook for the Week
The outlook for EUR/USD remains cautiously bullish, with the pair likely to trade in a range between 1.0970 and 1.1065. Speculators should watch for potential volatility driven by U.S. monetary policy updates and Eurozone business activity reports. The pair’s ability to sustain levels above 1.1000 will be crucial for further gains.
Thomas is a market analyst and self trader serving the community with his analysis and educational content from long time. The author has great exposure to different financial markets. He’s well-known for his day trading reviews and multiple timeframe analysis.
