EUR/USD break up limited, look for the broad 1.1630-1.1910 range to hold
|Currently, EUR/USD is trading at 1.1810, up 0.43% on the day, having posted a daily high at 1.1826 and low at 1.1730.
After a very slow session overnight where the pair traded between 1.1731-69 in Asia and 1.1731-55 Europe, bulls sprang to life in the US session with US yields falling sending the dollar lower.
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"White House drama steals limelight from Jackson Hole as politics trumps economics for the politically paralysed USD," explained analysts at ING Bank. Meanwhile, and with respect to this week's Jackson Hole, "In the absence of any surprise ECB or Fed policy news at Jackson Hole this week, there will be little impetus for EUR/USD to breakout of the narrow trading range this week.
"Market chatter that President Draghi won’t say anything new on the ECB's policy stance during his speech at the Jackson Hole symposium (24-26 August), as well as the lack of key data catalysts in the US and Eurozone, suggest a continuation of range-bound activity in EUR/USD. We look for the broad 1.1630-1.1910 range to hold this week but expect narrower trading in a quiet summer market," the analysts added.
EUR/USD levels
While trading above last week’s low at 1.1662, there is scope for further gains with the August 11 high at 1.1848 being in focus, explained analysts at Commerzbank. "If bettered, the current August peak at 1.1910 will be back in the picture, a rise above which will put the 1.2042 2012 low on the map. Still further up sits the 50% retracement from the move down from the 2014 high at 1.2168. Were a drop below the 1.1662 level to be seen, however, the 1.1621/1.1598 area would be targeted. It is where the late July low meets the five-month support line," the analysts explained further.
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