The euro continues to strengthen ahead of the Federal Reserve’s interest rate decision, with the EURUSD rate likely to climb further to 1.1800. Find more details in our analysis for 18 August 2025.
EURUSD forecast: key trading points
- The euro continues to strengthen
- Financial markets await the Jackson Hole Symposium
- EURUSD forecast for 18 August 2025: 1.1800
Fundamental analysis
The euro is holding steady around 1.1700 as markets remain wary of geopolitical developments. The upcoming Jackson Hole Symposium is expected to feature a speech by Jerome Powell, which could shed light on the Federal Reserve’s future actions. Powell is caught between calls for rate cuts (particularly from Trump) and the risks of rising inflation. His ability to maintain the Fed’s independence by relying on data rather than political pressure is crucial.
Following strong US fundamentals (growth in wholesale prices and retail sales), markets adjusted expectations for a significant September rate cut. This has provided the euro with additional stability against the dollar, fuelling further EURUSD gains.
EURUSD technical analysis
On the H4 chart, the EURUSD pair has formed a Harami reversal pattern near the lower Bollinger Band. At this stage, the pair continues to build an upward wave in line with the pattern’s signal. Given the sharp price surge, a correction to the nearest support at 1.1680 is possible. A rebound from this level would open the way for further upside.
At the same time, the EURUSD pair may also extend gains towards 1.1800 without testing the support level.
Summary
Today’s EURUSD forecast favours the euro. Technical analysis suggests a potential correction towards the 1.1680 support level, followed by an upward move to the 1.1800 resistance line.
Source: Roboforex