Euro: Limited downside, range defined against US Dollar – Scotiabank
Euro holds modest gains as US Dollar lacks momentum, Eurozone inflation in focus
EUR/USD kicked off Monday with an attempt to stabilise around 1.1587. Federal Reserve Chair Kevin Warsh returned support to the dollar with a hawkish performance at Jackson Hole.
The Euro hit a correction towards the target and support of 1.1570. As we see from the chart and as long as the market holds above this support, a rebound towards 1.1710 is likely.
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Warsh's hawkish Jackson Hole remarks revive September Fed hike bets as DXY rebounds while EUR/USD and GBP/USD break key technical support.
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EUR/USD Price Forecast: Gains ground to near 1.1600, bullish vibe prevails above 100-day SMA
EUR/USD retreats from highs while key support holds firm
Looking at the 4-hour chart, the pair traded below a bullish trend line with support at 1.1655. There was a clear move below the 50% Fib retracement level of the upward move from the 1.1511 swing low to the 1.1710 high.