The USD closed the week broadly higher, despite the wild knee-jerk seen last Monday, with the EUR/USD pair closing the week below 1.1200 after being as high as 1.1713.
The EUR/USD pair has fellen steadily for the last four days, having also broken below the 61.8% retracement of these last two-week advance, at 1.1280.
The daily chart shows that the technical indicators maintain strong bearish slopes, coming from oversold territory and pointing to break below their mid-lines, should the price continue falling.
In the same chart, the 100 and 200 DMAs converge around 1.1120, also a critical support level, meaning a break below it is required to confirm additional bearish momentum.
In the 4 hours chart, the technical indicators are hovering with no directional strength near oversold territory, whilst the 20 SMA maintains a sharp bearish slope well above the current price, supporting the longer term view.
In the meantime, the Jackson Hole Economic Symposium saw several Central Bank authorities from around the world expressing concerns over inflation and the risk of a global economic slowdown, although FED’s officers were generally hawkish, and left the doors opened for a September rate hike, supporting the US.
During the upcoming days, the macroeconomic calendar will be fulfilled with key data, including the RBA and the ECB economic policy meetings, although the market’s attention will gather around the US Nonfarm Payroll report on Friday, which will be the last macro tip investors will have before FOMC meeting later this month.