EUR/USD Price Forecast: Further Pullback as Dollar Extends Rebound

The euro extended its pullback against the dollar during Tuesday's European trading session, with the pair retreating from the nearby four-day high of 1.1711 to trade around 1.16579. Sentiment was cautious ahead of the US July Personal Consumption Expenditures price index release and the Jackson Hole symposium results, with renewed dollar buying pressure weighing on the euro.

**Dollar Rebound Dominates Short-Term Moves**

The dollar index found buying support ahead of key data releases, emerging as the primary factor dragging the euro lower. Investors are closely watching the upcoming US inflation data to gauge the Federal Reserve's subsequent policy path. A higher-than-expected PCE reading could further reinforce the dollar's rebound momentum, exposing EUR/USD to additional downside pressure. Market reports indicate heightened volatility in the pair amid uncertain monetary policy prospects.

**Technical Indicators Point to Pullback Signals**

From a technical perspective, EUR/USD failed to defend gains after hitting the short-term high of 1.1711, suggesting selling pressure above. The pair has now retreated to around 1.16579, with near-term support eyed at the 1.1620-1.1640 zone. A break below this support area could pave the way for a further decline toward 1.1570-1.1585. However, as long as key support levels hold, the broader uptrend structure remains intact.

**Market Awaits Key Event Guidance**

Policy signals from the Jackson Hole symposium will be a key variable shaping the medium-term direction of the pair. Market participants note that if the meeting hints at a more hawkish stance from the European Central Bank, it could provide support for the euro; conversely, if the Fed maintains a hawkish tone, the dollar's rebound trend may persist. Ahead of these major events, EUR/USD is likely to maintain a range-bound, consolidative pattern.