News & Analysis / Analysis / EURUSD Analysis: Price is Forming a Rebound from the Support of 1.085

EURUSD Analysis: Price is Forming a Rebound from the Support of 1.085

FXOpen

From the high of the year, set on July 18 near the level of 1.125, the price of EUR/USD fell in 1 month to the support of 1.085 (-3.4%). Today, the EUR/USD chart shows that the market is forming a rebound from this support, which has been in place since mid-June. What will be the further development?

Bullish arguments:
→ The market is in an uptrend (indicated by the blue channel) in 2023 and its lower boundary, which forms a powerful block of support at the level of 1.085, can help the bounce develop into a meaningful swing.
→ Support may come from SMA (100).

Bearish arguments:
→ The higher the price of EUR/USD rises, the closer the level of 1.095 becomes, which acted as support; but after the pin bar on August 10, the level was broken, and now resistance can be expected from it. If this is indeed the case, the market will form a weak bounce from the block of supports in the 1.085 area — a threatening sign for the current ascending channel.

Fundamental background:
→ Tomorrow morning (between 10:15 am and 11:00 am GMT+3) economic data from the Eurozone will be published, including the Purchasing Managers' Index (PMI), which is considered a leading indicator of the state of the economy. Last month, PMI values set multi-month lows, showing a slowdown in the economy in Europe, which led to a fall in the EUR/USD rate (shown by the arrow). It is possible that the market will get a new reason for a bearish momentum.
→ The media are writing about the weakening of the dollar on the eve of the symposium in Jackson Hole, where Powell is scheduled to speak on August 25. If the head of the Fed is clearly leaving the doors open for new rate hikes, this will allow the dollar to strengthen and put pressure on the EUR/USD rate.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Instrument
Live ECN bid
Live ECN ask
Action
EURUSD
1.08777
1.08803
Trade
GBPUSD
1.29275
1.29374
Trade
AUDUSD
0.63223
0.63247
Trade
USDJPY
148.620
148.645
Trade
USDCAD
1.43605
1.43721
Trade
More
Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Shares

Intel (INTC) Shares Surge by Approximately 14%

As shown in the Intel (INTC) stock chart:

→ Trading opened yesterday with a strong bullish gap.
→ By the end of the session, shares had risen by approximately 14% compared to the previous day's closing price.

According to Dow Jones Market

Commodities

Gold Price Nears $3,000 for the First Time in History

As shown in the XAU/USD chart today, gold is at a record high, just $5 away from the key psychological level of $3,000. Moreover, on the futures market, COMEX data indicates that gold futures have already surpassed this

What Is Dollar-Cost Averaging (DCA) in Investing and Trading?
Trader’s Tools

What Is Dollar-Cost Averaging (DCA) in Investing and Trading?

Dollar-cost averaging (DCA) is a popular strategy used by investors and traders to manage market fluctuations and build positions over time. Instead of trying to time the market, DCA focuses on consistent, regular investments regardless of price movements. This article

Los CFDs son instrumentos complejos y conllevan un alto riesgo de perder dinero rápidamente debido al apalancamiento.Los CFDs son instrumentos complejos y conllevan un alto riesgo de perder dinero rápidamente debido al apalancamiento. El 72.81% de las cuentas de inversores minoristas pierden dinero al negociar CFD con este proveedor. Debe considerar si comprende cómo funcionan los CFDs y si puede permitirse asumir el alto riesgo de perder su dinero.