24.08.201702:25 Forex Analysis & Reviews: Markets await statements by Mario Draghi and Janet Yellen

Data released yesterday afternoon slightly affected the quotations of the US dollar, which strengthened against the euro after Tuesday's trading results.

According to the report, manufacturing activity in the area of responsibility of the Federal Reserve Bank of Richmond has not changed compared to the previous month. The growth in employment, which was noted in August, offset the drop in supplies and new orders.

According to the Fed-Richmond data, the current conditions composite index in August of this year was 14 points, while the employment index rose to 17 points from 10 points, and the supply index fell to 8 points. The index of new orders dropped to 17 points.

Demand for the US dollar rose yesterday, as many investors are waiting for statements by central bankers that may shed light on further changes in their countries' monetary and credit policies.

Today, the focus will be on ECB President Mario Draghi's speech at the Jackson Hole Symposium. If Draghi refrains from declaring to wind up the program of the bond repurchase program and generally sticks to soft comments, then the pressure on the euro will grow significantly, which will lead to a fall in the EURUSD pair in the short term.

It should be noted that recently the growth of the single European currency has been disrupted by the European Central Bank, as this leads to a curbing of the inflation rate, and also reduces the competitiveness of the eurozone's exports abroad.

In this regard, to expect that the president of the ECB will make statements aimed at further growth of the European currency, will not be entirely correct.

If today, Draghi does not say anything interesting, the attention of traders will switch to the speech of Fed Chairman Janet Yellen, which will be held this Friday. Many expect that the head of the Federal Reserve may point to the possibility of a third increase in interest rates this year.

As for the technical picture of the EURUSD pair, the breakthrough of the middle of the channel 1.1750 could lead to quick selling of the euro to the support areas of 1.1710 and 1.1680, and the removal of the lower support to a further downward trend with the expectation of updating to 1.1630 and 1.1560.

If the demand for the euro grows, then the removal of stop orders above 1.1780 could lead to a sharp upward trend in risky assets already in order to update the monthly highs of 1.1810 and 1.1850 with an expectation of reaching 1.1880 and 1.1930.