EUR/USD Update 22 Aug 17

Good day forex traders.

It is time for a quick update of the EUR/USD. Considering that we have important economic events this week, it is imperative that caution is taken.

Looking at the short term hourly chart above we observe significant volatility as the currency pair attempts to break 1.18.

Bloomberg reports ”

Euro Pressured as Volatility Rises on Jackson Hole, FOMC Meeting

Dollar stabilizes as traders stay pat amid White House turmoil

The euro started the week on a defensive footing amid thin flows as the market’s focus remained fixed on the central bankers’ summit at Jackson Hole, Wyoming later this week, which has kept intact demand for long-volatility trades.

Even as odds have diminished that the Federal Reserve’s annual symposium could be a game changer for markets, the euro’s one-week implied volatility rose the most since July 13 as long-vega trades gained traction. U.S.-South Korea joint military drills starting Monday, which raises the risk of a rebound of North Korea-related tensions, also supported the case for such positioning. The relative premium to own exposure in euro-dollar options over Jackson Hole rose to a three-week high. ”

We are currently adopting a wait and see approach so as to observe the EUR/USD for momentum cues.

Trade safely and do practice proper money management.

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