22.08.202408:56 Forex Analysis & Reviews: Hot forecast for EUR/USD on August 22, 2024

Relevance up to 02:00 2024-08-23 UTC--4

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The EUR/USD pair is adhering to a momentum-driven upward trend, which has strengthened the exchange rate by more than 350 pips since the beginning of the month. As a result, not only has the uptrend cycle been extended and the psychological level of 1.1000 broken, but the local high set in December 2023 has also been tested.

In the 4-hour chart, the RSI technical indicator is moving in the overbought zone, suggesting an excessive number of long positions.

Regarding the Alligator indicator in the same time frame, the moving average lines are aligned with the direction of the trend.

Expectations and Prospects

From a technical perspective, the recent increase in the exchange rate has only intensified signs of the euro's overbought condition. However, speculators are ignoring this fact, leading to further strengthening. If the uptrend cycle continues to develop, it can be assumed that the movement will aim toward the peak of the uptrend, which is around the 1.1280 level.

The complex indicator analysis suggests an upward cycle in the short-term and intraday periods.

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