Forex Marketz Daily Forex News – Fully Markets Update
Looking at the euro currency (EUR) and the world’s most liquid currency exchange rate, the EUR/USD, the above daily MT 4 chart showed that this Forex market inched higher after the Federal Reserve Board signaled a dramatic shift in monetary policy at their Jackson Hole economic symposium last week.
Federal Reserve Chair Jerome Powell, during his speech at the symposium, signaled that he U.S. central bank was taking a markedly dovish pivot. The Federal Reserve Chair said that the Fed will allow inflation to overshoot and then “catch up” before they contemplate any raise to the key overnight Fed Funds Rate (FFR).
The Federal Reserve will also keep borrowing costs low. Mr. Powell also said that employment is now a bigger priority than inflation. This is a major long-term shift in the central bank’s monetary policy.
The economic calendar to start the week off is pretty quiet out of the United States and the United Kingdom. Germany will publish monthly consumer price index (CPI) data and the Eurozone will release both quarterly and monthly gross domestic product (GDP) data.
Daily Euro Technical Analysis (EUR/USD)
Looking at the above MT 4 price chart, the euro currency is still in control over the U.S. dollar as we enter the new trade week and the month comes to an end. The relative strength index (RSI) is below seventy (70), which is not with overbought territory.
This indicates more upside for the euro over the broadly weakened greenback. With that said, upside momentum is starting to weaken. There is some hesitation with traders at this price altitude.
The EUR/USD Forex market is trading well above the fifty, one hundred and two hundred (50,100,200) day moving averages adding to the mixed signals in this key currency exchange rate. With that said, a daily close above 1.1965 opens the door for the 2020 high price point at 1.1965.
The next upside barrier is in play at the key 1.20 level. Technical support lines up at 1.1850 with the next key level of support to monitor lining up at 1.1750. The downside barrier of 1.17 then comes into focus.
