The 200-day SMA was breached by EUR/USD at the end of the week.
To end the week, the EUR/USD dropped below the 200-day SMA of 1.0800 and approached the 1.0795 region.
The Euro suffered its fourth straight weekly loss against the USD.
The Euro is weakened by Christine Lagarde’s cautious approach at the Jackson Hole Symposium.
The 200-day Simple Moving Average (SMA) of 1.0800 was breached by the EUR/USD bears on Friday, establishing a 0.72% weekly loss, their fourth straight. Additionally, a bearish cross between the 20- and 100-day simple moving averages (SMAs) indicated potential downside for the pair going forward.
Christine Lagarde, president of the European Central Bank (ECB), didn’t say anything particularly noteworthy at Jackson Hole. She said that while the bank is prepared to hike rates as much as is feasible, an integrated strategy is required for successful policy. According to the World Interest Rates Probabilities (WIRP), investors bet on 40% and 55% odds of a 25 basis point (bps) raise at the September and October meetings, respectively. For the time being, ECB expectations are still low, mostly due to the Eurozone’s dismal performance.
Watching the EUR/USD levels
It is clear from the daily chart that the short-term outlook for EUR/USD is bearish. The Relative Strength Index (RSI) is still in a negative area below its midline, showing a southward slope that is getting close to oversold conditions. Red bars are also visible on the Moving Average Convergence Divergence (MACD), highlighting the EUR/USD’s escalating negative trend. The pair is below the 20, 100, and 200-day Simple Moving Averages (SMAs), on the other hand, suggesting that the sellers are now in control on a bigger scale.
