EUR/USD Forecast: Bulls Remain Cautious as Fed’s Neel Kashkari’s Dovish Words Pressure USD

  • Will the Jackson Hole Symposium Shed Light on Monetary Policies?
  • EUR/USD Maintains Positive Tone Amidst Risk Appetite

The EUR/USD pair reached a new high of 1.1049 in 2024 as market optimism prevails. The US Dollar faced pressure following dovish comments from Federal Reserve’s Neel Kashkari, hinting at a potential interest rate cut in September. Despite this, concerns about a recession have eased as US data shows a resilient economy.

Looking ahead, the focus will be on the Jackson Hole Symposium later this week, where monetary policies may be discussed. With no significant economic data available, investors are awaiting comments from Fed Board members and the release of Purchasing Managers Indexes (PMIs) on Thursday.

EUR/USD Technical Analysis

Technically, the EUR/USD pair remains bullish but cautious. Indicators suggest upward momentum, with the pair trading above key moving averages. In the short term, support levels are at 1.0985, 1.0950, and 1.0900, while resistance levels are at 1.1045, 1.1090, and 1.1120.

Overall, the EUR/USD pair is poised for further gains, supported by dovish Fed comments and positive market sentiment. Traders should keep an eye on upcoming events for potential market-moving developments.

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