Community Forecasts for August 3-7: EUR/USD 1W Chart

Source: Dukascopy Bank SA
© Dukascopy Bank SA
The most popular currency pair started a week on a positive note, however, did not manage to defend positions and beginning to decline gradually. At the same time, Dukascopy Community members expected the EUR/USD currency pair to decrease in value, as 57% of votes were bearish. The Euro extended gains on Monday, advancing to two-week highs following an upbeat German data, as investors turned their attention to the upcoming Federal Reserve policy meeting. Nevertheless, in the middle of the week, the single European currency remained modestly lower against the Dollar, after data showed that US pending home sales unexpectedly fell in June. Moreover, on Friday, the Greenback was higher versus the Euro, since the Federal Reserve indicated that interest rates could rise in the coming months, possibly as early as September. Therefore, the pair closed around 1.0983 mark on Friday.
This week is presumed to be rich on important fundamental news, which may potentially influence movements of the pair even more. On Wednesday, the US is to release the ADP report on private sector hiring, while on Friday, will be published US closely watched government report on nonfarm payrolls. 
Participants of the Dukascopy Community Forecasts quiz support the general negative view on the pair, with 60% of all votes being short at the moment. According to geula4x opinion, "EUR/USD still seems bearish on the daily chart. Price is capped by the long-term down trend line, which has started on June 18, from around 1.1440 price level. This trend line confluences 1.1120 horizontal resistance area, near Friday's high as well as July 27 daily high. This is current resistance, while support lies around 1.0800 area.
", however, aslamhammad sees "… the European CPI to improve on next coming Friday on August 29th. I expect the closing price to be around 1.3300."

© Dukascopy Bank SA
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