Any more buyers left for EUR/USD? | KOL Forex Analysis• Langa Ntuli

EUR/USD has been sideways in a range of approximately 130 pips since it hit a high of 1.1917 almost two weeks ago. We're in a very, very bullish trend here with EUR/USD as the pair is overbought on the RSI if you view the weekly time-frame. This occurrence is substantial, especially on such a bigger time-frame like the weekly.

If we look at the last three candles of the weekly time-frame, they all show green, which means there is potentially more buying power than anything else. The apparent price level to watch is, of course, 1.1917. Coupled with the market being overbought, according to the RSI, on the weekly time-frame, there is a higher likelihood that if the market does not close below 1.1710, before the weekend, it could potentially break the high. 1.710 is the most recent low in the last week.

Looking at the fundamentals, we cannot rely on the current interest rates of the ECB (European Central Bank) and the Fed (Federal Reserve Bank) right now, at least if we're interested in the long-term prospects. Both central banks will release their interest rate decisions about a month from now, which isn't far away. Those rates will be more current and of more significance.

The US seems to be winning when it comes to the jobs figures compared to the EU. The US economy added 1763 jobs in July, according to the NFP (Non-Farm Payrolls) release on the 7th of August 2020. Meanwhile, Eurozone's unemployment was slightly worse than expected at the release of its figures on the 30th of July 2020, increasing from 7.7% to 7.8%. These jobs figures are released monthly, and as a result, usually affect the markets in the near term. However, though the US did better on the jobs front for July than its counterpart, the technical analysis tells a different story in the near term and medium terms. It would be more prudent to focus on the charts for now.

There aren't many noteworthy news releases to look forward for EUR/USD this week, except on Friday, the 21st of August 2020. There are three high-impact news releases related to the PMI, all in a short span of 15 minutes. We can only wait and see what happens before Friday. Perhaps this news may or may not have impact by Friday. Fridays are typically days when massive reversals can slowly start, though I wouldn't bet on that until we see how we close in the next few days and at the market close before the weekend.

Overall, EUR/USD is more bullish than your average uptrend, and the likelihood of that continuing is higher than otherwise. 1.1917 and 1.1710 are the areas of interest in the coming days. It's going to be interesting in the much longer-term on the ECB and the Fed's interest rate decisions. These central banks will release the new interest rates on the 10th of September 2020 and the 16th of September 2020, respectively.

【About the author】

Mr. Ntuli is a retail trader and writer in forex. He has been engaged in the forex markets for many years. He also has knowledge about many other financial markets, namely stocks, indices, and cryptocurrencies. For the past year, he has then transitioned to writing content on various forex-related topics for different clients ranging from broker reviews, trading strategies, indicators to educational information about the markets.

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