EUR/USD at Eight-Month High, Fed Minutes to Drive Volatility


EUR/USD at Eight-Month High, Fed Minutes to Drive Volatility

EUR/USD surged nearly 0.4% on Tuesday, reaching its highest levels since last December and marking a fresh high for 2024. The pair has closed in the green for three consecutive trading days and is on track to gain a full percent since Monday’s opening bids.

The Pan-European Purchasing Managers Index (PMI) activity survey results are anticipated early Thursday, with the EU Manufacturing and Services PMIs for August expected to remain steady at 45.8 and 51.9, respectively.

In the US, the PMI business activity survey results are also due on Thursday, coinciding with the start of the annual Jackson Hole Symposium, which will run through the weekend. Wednesday will bring the release of the Federal Reserve’s (Fed) latest Meeting Minutes, but market participants will likely be focused on Thursday’s events for potential market-moving insights.

US S&P Global Manufacturing PMI expectations are forecast to hold steady at 49.6 in August, while the Services PMI component is expected to decrease by a full point to 54.0 from 55.0. The kickoff of the Jackson Hole Symposium on Thursday is expected to capture significant investor attention, but it’s Friday’s appearance by Fed Chairman Jerome Powell that is likely to set the overall tone of market sentiment heading into next week.

Technical Outlook : EUR/USD at Eight-Month High

The EURUSD pair is at 1.1326, the highest level since late December yesterday, and traded 0.40% to 1.1264. Since the beginning of the month, the couple has seen a change of heart. More than 2 percent. After the upper side of the triangle pattern, the pair approached the major resistance at 1.11325. The division above will increase.

And the pair will touch the next resistance at 1.1355-1.1385. However, it does provide a currency channel rather than basic technical news such as the Fed rate cut and the Jackson Hole meeting.

A reversal is seen as a pullback to 1.1150-1.1080.

So be careful.

Happy Trading!
Commodity Samachar
Learn and Trade with Ease

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