(MENAFN- Daily Forex) Bullish pattern

• Buy the EUR/USD pair and set a take-profit at 1.1835.
• Add a stop-loss at 1.1550.
• Timeline: 1-2 days.

Bearish view

• Sell the EUR/USD pair and set a take-profit at 1.1550.
• Add a stop-loss at 1.1835.

The EUR/USD exchange rate was flat today, August 19, as traders refocused on the upcoming Jackson Hole Symposium meeting in Wyoming. It was trading at 1.1665, a few points below last week's high of 1732 Hole Symposium Speech

The EUR/USD pair was in a tight range as market participants reacted to the recent economic numbers from the United States.

A report by the Bureau of Labor Statistics (BLS) showed that the headline Consumer Price Index (CPI) remained unchanged at 2.7% in July, lower than the median estimate of 2.8%.

The core CPI, which excludes the volatile food and energy prices, jumped to 3.1%. Another report revealed that the producer price index soared, in a sign that Donald Trump's tariffs were having an impact.

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Attention now shifts to the upcoming Jackson Hole Symposium, where Jerome Powell and Christine Lagarde will meet and provide guidance on the upcoming meetings and what to expect.

The average estimate is that the Fed will start to cut interest rates in the upcoming meeting in September as it focuses on the deteriorating labor market. A recent report showed that the economy created 73,000 jobs in July, after creating 70,000 in June and May. The unemployment rate rose to 4.2% during the month.

The only catalyst for the EUR/USD pair will be the upcoming US housing starts and building permits data. Economists expect the numbers to show that the housing starts slowed to 1.3 million, while building permits remained at 1.39 million.

Michele Bowman, a senior Federal Reserve official, will also talk, and likely maintain her view that the bank should start cutting interest rates as soon as possible.

EURUSD Chart by TradingViewEUR/USD Technical Analysis

The 12-hour chart shows that the EUR/USD pair has moved sideways in the past few days as market participants reflect on the next actions by the Federal Reserve. It was trading at 1.1667, lower than last week's high of 1.1727.

The pair has formed an inverse head-and-shoulders pattern, a popular bullish reversal pattern. Also, the Awesome Oscillator indicator has remained above the zero line, a sign that bulls are in control.

Therefore, the pair will likely have a strong bullish breakout, with the next target being the year-to-date high of 1.1835. A break above that level will point to more gains, potentially to 1.200 later this year.

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