Markets are already prepared with the main event of the week which is the meeting of the heads of largest securities in Jackson Hole. The meeting will be held in two days, Thursday and Friday. Fed Chair Yellen will have her speech tomorrow.
The attention was focused on Yellen's remark, and most importantly, the head of the ECB, M. Draghi.
According to the Federal Reserve policy, there is no doubt that the Fed has taken the path of raising rates through a "slowly but surely" manner. At the end of the year, surplus liquidity will begin to be withdrawn from the markets.
However, the ECB's course is unclear. When will the ECB turn the policy toward normalization from the current pumping of the market? On Wednesday, everyone waited for something important from Draghi to implement in Germany but the head of the ECB did not say anything regarding this matter.
Suddenly, the representative of Estonia in the ECB made a speech and said that the growth of the euro does not arouse his fears. (Estonia is not part of Germany or France).
What do we see in the picture of the euro?
EURUSD
It seems that a breakthrough is more likely to happen.
We will buy at the break of 1.1830 - 1.1850 levels and expect a breakthrough towards the top of 1.1910 region and further up to 1.2000 mark. An alternative option is to sell a breakthrough down to the 1.1660 area.
