Forex: EUR/USD: Pro traders see upside potential - FXWW

FXstreet.com (San Francisco) - EURUSD is gently offered as it consolidates around the 100-day EMA (1.2525) in early Asia. Market participants are mostly sidelined ahead of the Jackson Hole summit, and this quiet sideways action is expected to continue.

"There has been a lot of demand for out-of-the-money 1-month calls so obviously the professional trading community sees plenty of upside potential," explains Sean Lee, founder of FXWW. "Any such moves won't happen today in EURUSD, with Fibo resistance, Sovereign sellers, and a sizeable option barrier all providing stiff resistance ahead of 1.2600."

Looking at the higher timeframes, price continues to trade below the 21-week EMA (1.2591) and around Fibonacci resistance at 1.2506 (38.2%, 1.3283/1.2042). RSI looks to have room to trek higher, last valued at 45. On the monthly timeframe, RSI is turning higher from a period of stagnation, last at 41. A sustained break of the 1.2590 price zone, which is also confluent with the 200-month EMA, may trigger a round of bids and price may hold scope to run toward resistance around 1.3500 (50%, 1.4938/1.2042 decline).