EURUSD forecast for the week of 28-Aug-2017

Fundamental Analysis

EURUSD pair consolidated for the most part of last week until the comments given by Yellen and Draghi on Friday.

The markets awaited in anticipation of the meeting at Jackson Hole, looking for clues from the central bank heads, of the monetary policy ahead.

The markets expected Yellen to be hawkish to give some boost to the greenback. However she chose not to give such clues. The Dollar in turn weakened across the board sending the pair to the region around 1.1870

Even though Draghi did not say anything new, his optimistic comments about the signals of economic recovery in Europe was good enough for the market participants who were already long on Euro. Thus, the pair moved through 1.19 ending the week at the highest levels it has been since 2015.

Technical Analysis

EURUSD Weekly

The EUR/USD pair went up massively on Friday, to form a very bullish candle for the week. The pair broke above the top of two hammers, which are sitting at the 1.17 level. It also closed above the shooting star formed earlier this month.

Forecast

The technical analysis and the fundamental factors suggest that the pair  is trying to go to 1.20 level. At 1.20 level there will be resistance as it is a round figure. Past that, the pair looks likely to extend to 1.25 region as well. Any corrective pull back will offer value at this point.

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