EUR/USD - Review from August 19, 2024

After an unsuccessful attempt to strengthen the US dollar, when the Euro couldn't overcome the 1.0900 mark, which we wrote about last week, the growth of the EUR/USD pair was resumed. The Euro is supported by expectations of a 25 basis point rate cut by the US Federal Reserve. Futures markets have fully priced in the anticipated quarter percent rate cut, while the probability of a 50 basis point reduction is at 26%. However, much will depend on US employment data, which should be released in the next report. Also, the speech of Federal Reserve Chairman Jerome Powell at a conference in Jackson Hole on Friday may influence the situation.

Technically, quotes are now confidently holding above the 1.1000 mark. If they rise, the target will be the 1.1140 level zone and test the strong resistance area around the 1.1200 mark. It's too early to talk about a decline at this point.