Community Forecasts for August 24-28: EUR/USD 1W Chart - Community Forecasts - Dukascopy Bank

Tue, 25 Aug 2015 12:47:07 GMT
Source: Dukascopy Bank SA
 
© Dukascopy Bank SA
EUR/USD was trading on a positive note during the previous working week, as the common currency managed to show some notable gains against the American Dollar. The vast majority (63%) of Dukascopy Community members saw the pair higher by the end of the period ended Aug 21, and their expectation used to be fully correct. EUR/USD opened the trading week on Monday just around the 1.11 mark, but rallied more than 250 pips to close in the vicinity of 1.14 five days later. The Euro, along with the Swiss Franc and Japanese Yen, has been unusually considered to be a safe-haven currency against the US Dollar, which was sold off amid a global stock rout, which in turn decreased the probability the Federal Reserve will decide to increase interest rates as soon as September of this year. Fundamentals used to have insignificant impact on this currency pair. Even rising US existing home sales and manufacturing activity in the Philadelphia region failed to provide the Buck with any bullish momentum in its pair with the Euro.
As volatility in the equity markets remains uplifted, traders are moving away from the Greenback as Fed meeting approaches. As a result, the advantage of bullish votes increased even more over the past five trading days, up from 63% to almost 73%. Market participants also see the pair higher by Friday of this week, with the mean forecast being placed at 1.1450. As RacerX suggests "With increasing skepticism about the Federal Reserve raising interest rates in the middle of next month and the unexpected devaluation of the Yuan, the Euro is looking increasingly attractive." However, the trader's mentioned bullishness of the single currency will be tested by some important fundamentals both from Europe and US. Among them, US Durable Goods Orders are due on Wednesday at 12:30 GMT, while on Thursday markets are waiting for a second release of US Q2 GDP.

© Dukascopy Bank SA

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