EUR/USD Price Forecast: Buyers remain in charge above the 200-day SMA
EUR/USD is virtually unchanged on Thursday, with price action settling into consolidation after the pair climbed to a three-month high of 1.1711 earlier this week.
EUR/USD price remains stable, hovering around 1.1651 as traders await Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Symposium on Friday. The near-term fundamental and technical outlook favors the Euro, but momentum indicators suggest a potential slowdown in the pair's upward movement. At the moment, the 200-day Simple Moving Average (SMA) serves as support at 1.1632.
Strategists at Brown Brothers Harriman note that EUR/USD is currently directionless around 1.1650, with the 200-day moving average proving crucial for the pair's consolidation. ECB's interest rate policies, with expectations of a 25bps hike to 2.50% at the September 10 meeting and a total tightening of 60bps over the next year, support the Euro.
Technical analysis shows a steady uptrend since the start of the month, with the pair hitting higher highs and higher lows while re-establishing key SMAs between 1.1480 and 1.1630. Support lies at the 200-day SMA (1.1633) and the 100-day SMA (1.1574), while resistance is at the 1.1700 psychological level and the 1.1800 mark.
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