20.08.201809:35 Forex Analysis & Reviews: Forecast for EUR / USD pair as of August 20, 2018

EUR / USD pair

The EUR/USD pair rushed to a rising correction after reaching the target price of 1.1300 on August 15, which became a strong support and the growth of which can be any. The nearest resistance is 1.1462 on the daily scale. The penetration of the line may be followed by an increase in resistance to the trend line of the descending channel to the area of 1.1538. But even this resistance can be overcome, after which the prospect of growth becomes even more uncertain.

On a new week, there is little economic statistics but there will be a conference in Jackson Hole (August 23-25), from which, as usual, investors are waiting for a (pleasant) surprise. In this case, Powell's assurances of independence from the White House in the context of continuing to raise rates before the inflation target level of 2.5%, because the theme of his Friday speech is called "Monetary policy in a changing economy."

In emerging markets, after the strengthening of national currencies, there was a lull this week, which creates a reason for correction of EUR / USD and other major world currencies. The main scenario remains the same as the price will try to overcome support 1.1300 for the second time, then to go down to the lower trend line at 1.1198. The situation on the 4-hour chart shows that the option with further price growth is gaining momentum. The price was fixed on the MACD indicator lines (blue) and the balance line (red) with the oscillator indicator Marlin points to a strong bullish trend. We are waiting for the development of the situation.