Upside Resistance Caps EURUSD Around 1.1850 Level, Calm Before the Storm

EURUSD Price Analysis – August 27

EURUSD is posting modest gains in the 1.1801-1.1850 region while Thursday’s daily chart is showing that the pair is capped beneath the at 1.1850 but has upside momentum. The calm before the storm is awaiting Fed Chair Powell’s critical Jackson Hole speech. The Fed may adopt a looser policy on inflation, potentially weakening the dollar.

Key Levels
Resistance Levels: 1.1980, 1.1940, 1.1916
Support Levels: 1.1750, 1.1685, 1.1606
EURUSD Long term Trend: Bullish
After reaching fresh highs near the 1.1965 regions earlier in the month, EURUSD now confronts some consolidation. During the current session, EURUSD tried to crack the upper boundary of the neutral zone it ranged over the past week, but its attempts failed as the upside barrier once again protected the bears about 1.1850 level.

The increase from level 1.0635 is seen in the wider sense as the third step of the cycle from level 1.0339. The cluster resistance at 1.2555 is next at (38.2 percent retraction from 1.6039 to 1.0339 at 1.2516 levels) might be seen as more rally increase. As long as 1.1422 resistance level turned support persists, this will stay the preferred scenario.
EURUSD Short term Trend: Ranging
With range trading continuing, the intraday bias in EURUSD remains neutral. As long as there is a support level of 1.1709, an additional increase is slightly in support. On the contrary, a breach of level 1.1965 may prolong the entire increase from level 1.0635.

Nevertheless, given the condition of bearish divergence in 4 hrs RSI, a breach of 1.1709 level would validate short-term topping. For the horizontal support line (now at 1.1606 level) the intraday bias is shifted back to the downside.

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