The EURUSD could be in for a stronger rally to 1.20, having defended the 20-month moving average for the third straight month in July. What is next? The following 1 August EURUSD Technical Forecast will show.
1 August, GKFX – The monthly chart shows the currency pair has charted back-to-back doji candles along the 20-month MA support, signaling indecision or bearish exhaustion following a drop from the February high of 1.2556.
Consequently, the common currency looks overdue for a corrective rally. At press time, the EURUSD is trading at 1.1680.
Focus on the Fed
Federal Reserve (Fed) is expected to keep interest rates unchanged at 1.75-2.00% today, having lifted borrowing costs by 25 basis points in June. The absence of a post-meeting press conference and new economic projections also makes the July meeting a less exciting event.
Nevertheless, investors will scan the policy statement for clues on whether the US President Trump’s criticism of rate hikes is forcing the Fed to adopt a more tempered tone.
1 August EURUSD Technical Forecast
The EURUSD could rise if the Fed tempers hawkish tone. On the other hand, the pair may fall back to the key support of 20-month MA, currently located at 1.1623 if the central bank downplays trade war fears and retains hawkish rhetoric.
Resistance: 1.1747 (previous day’s high), 1.1791 (July 6 high), 1.1852 (June 14 high).
Support: 1.1674 (50-day moving average), 1.1620 (lower Bollinger Band as per the daily chart), 1.1508 (June 21 low).
This article 1 August EURUSD Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.