The chart of the dollar index (DXY) last week resembled the Greek letter “Λ.” Accordingly, the dynamics of major dollar-paired assets can be illustrated as a Latin “V.” For most of the five trading days, the U.S. currency strengthened, but then Jerome Powell delivered a blow. In his speech prepared for the annual Jackson Hole conference, the Fed Chair hinted at a possible interest rate cut in September. As a result, DXY tumbled, while its “counterparts” moved sharply higher.
💶 EUR/USD
The euro fell to a weekly low of 1.1582, but finished on Friday, August 22, at 1.1720. The pair remains in an upward channel, supported by dollar weakness linked to expectations of Fed monetary easing. In the coming days, bulls may attempt to push quotes toward 1.1800, though strong resistance could trigger a pullback to 1.1580, or even 1.1450 if selling pressure increases. A breakout above 1.1825 would pave the way to 1.2065 and further to 1.2345.
₿ BTC/USD
Bitcoin closed Friday at $117,042 and traded near $115,500 on Saturday. Some analysts believe the uptrend is still intact; however, since July 11 BTC has failed to escape its sideways channel of 111,950-123,250. Buyers will almost certainly make another attempt to break above this range and test resistance in the 130,000-135,000 zone, although a downward correction cannot be ruled out beforehand. A fall below 104,500 would cancel the bullish scenario and could drive the price down toward 90,300. Against this mixed backdrop, Ethereum drew attention by setting a new all-time high on August 23, reaching 4,890.
🛢 Brent
Brent crude ended the week at $67.28 per barrel, returning to levels last seen on August 7. The monthly low was recorded at 64.70, after OPEC+ raised output by more than half a million barrels per day and geopolitical tensions eased. In the coming week, prices may attempt a recovery toward 69.00. A breakout of this resistance would open the way to 71.65-72.60, and in the medium term toward the summer highs of 77.00-77.70. However, sellers are likely to maintain pressure, which could drag prices down into the 62.60-63.00 range.
🥇 XAU/USD
Gold closed Friday at $3,372 per ounce, confirming sustained investor demand amid expectations of U.S. rate cuts. Volatility has been steadily declining, with the pair still moving inside a sideways corridor of 3,255-3,440 and within a medium-term triangle converging near 3,350. In the coming days, the metal may test the upper boundary of this corridor. A firm consolidation above 3,440 would signal a move to new highs in the 3,500-3,525 area, while a failed breakout could lead to a pullback toward 3,255-3,290. A drop below 3,225 would cancel the bullish scenario and might trigger a decline to 2,855.
🔎 Conclusion
Markets enter the final week of August with heightened interest in safe-haven and speculative assets. Bitcoin and gold retain the strongest growth potential, EUR/USD is consolidating within its upward channel, while Brent remains vulnerable to oversupply.
During the week of August 25-29, investors’ attention will focus on a series of macroeconomic releases. In the U.S., the Conference Board Consumer Confidence Index, durable goods orders, the second estimate of Q2 GDP, and the PCE price index will be published. In Europe, preliminary inflation data for Germany, France, Spain, and Italy will be released, along with the European Commission’s business and consumer sentiment indices. Germany will report labour market statistics, while Japan will release unemployment figures, Tokyo inflation, retail sales, and industrial production data. Traders should also keep in mind that August 25 is a bank holiday in the UK, and the London Stock Exchange will be closed.
