Market Analysis: US Dollar Is Correcting after a Long Rise

<img src="https://fxopen.com/blog/en/content/images/2023/08/gbp-usd.jpg" alt="Market Analysis: US Dollar Is Correcting after a Long Rise" /><p>In the penultimate trading week of August, we are observing a certain passivity of greenback buyers on the market, which allows other currencies to both correct and form full-fledged reversal combinations.</p><h3>GBP/USD</h3><p>In the British pound/US dollar currency pair, we are seeing an attempt by buyers to break through the resistance at the alligator lines and go above the significant resistance of 1.2800. On the daily timeframe, a reversal bullish bar was formed on August 14 near 1.2720. Cancellation of the upward correction scenario is considered only after the pair goes below the low of the signal bar. If, in the next trading session, the price goes above 1.2800, the pair may rise to the important area at 1.3000-1.3100.</p><p>Tomorrow at 11:30 GMT+3, we are waiting for the S&amp;P Global/CIPS Manufacturing PMI Flash and S&amp;P Global/CIPS Services PMI Flash data for August.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/08/gbpusd.png" alt="Market Analysis: US Dollar Is Correcting after a Long Rise" loading="lazy" width="2000" height="924" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/08/gbpusd.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/08/gbpusd.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/08/gbpusd.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/08/gbpusd.png 2400w" sizes="(min-width: 720px) 720px" /></figure><h3>USD/JPY</h3><p>Strengthening of the US dollar/Japanese yen pair slowed down slightly above 146 figures, which allowed buyers to form a reversal bearish bar near 145.60. Cancellation of the scenario of a downward correction will be a rise above 146.40. And in case of the development of a downward movement, the primary decline may lead to 143.80-142.00.</p><p>Important for the pricing of the pair will be today&apos;s data on Existing Home Sales in the US in July. Also, at 19:30 GMT+3, you can pay attention to the speech of a member of the US Federal Open Market Committee (FOMC), Michelle Bowman. Tomorrow early in the morning, we are waiting for the publication of the Jibun Bank Manufacturing PMI Flash of Japan for July.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/08/usdjpy.png" alt="Market Analysis: US Dollar Is Correcting after a Long Rise" loading="lazy" width="2000" height="924" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/08/usdjpy.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/08/usdjpy.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/08/usdjpy.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/08/usdjpy.png 2400w" sizes="(min-width: 720px) 720px" /></figure><h3>EUR/USD</h3><p>The euro bulls also managed to contribute to the upward rollback. Last week, the pair was slowly sliding towards 1.0800, but on Friday, the buyers managed to seize the initiative, as a result of which a bullish reversal bar was formed near 1.0890. The upward movement is still sluggish, but in case of a rise above the psychological level of 1.1000, a test of 1.1200 might be considered.</p><p>Tomorrow there will be data on the HCOB Manufacturing PMI Flash and HCOB Services PMI Flash in the eurozone for August.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/08/eurusd.png" alt="Market Analysis: US Dollar Is Correcting after a Long Rise" loading="lazy" width="2000" height="924" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/08/eurusd.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/08/eurusd.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/08/eurusd.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/08/eurusd.png 2400w" sizes="(min-width: 720px) 720px" /></figure>