EUR/USD falls below the 200-day SMA at the end of the week

The EUR/USD fell below the 200-day SMA of 1.0800 towards the 1.0795 area to close the week.
The Euro tallied a fourth consecutive weekly loss against the USD.
The cautious stance by Christine Lagarde at the Jackson Hole Symposium weakens the Euro.

Patricio Martín FXStreet

In Friday’s session, the EUR/USD bears broke through the 200-day Simple Moving Average (SMA) of 1.0800, setting a 0.72% weekly loss, its fourth in a row. In addition,the 20 and 100-day SMAs performed a bearish cross, suggesting that further downside may be on the horizon for the pair.

At Jackson Hole, Christine Lagarde, president of the European Central Bank (ECB), didn’t provide any highlights. She stated that the bank is ready to raise as much as possible rates but that a multi-legged approach is needed for effective policy. As for now, ECB expectations remain subdued, mainly driven by poor results shown by the Eurozone and according to the World Interest Rates Probabilities (WIRP), investors bet on 40% and 55% odds of a 25 basis point (bps) hike in the September and October meetings.

EUR/USD Levels to watch

Based on the daily chart, it is evident that EUR/USD leans toward a bearish outlook in the short term. Relative Strength Index (RSI) remains below its midline in negative territory, showcasing a southward slope nearing oversold conditions. Similarly, the Moving Average Convergence Divergence (MACD) exhibits red bars, emphasising the strengthening bearish momentum for EUR/USD. On the other hand, the pair is below the 20,100 and 200-day Simple Moving Averages (SMAs), indicating that the sellers now dominate on the broader perspective.

Support levels: 1.0780, 1.0750, 1.0730.

Resistance levels: 1.0800 (200-day SMA), 1.0850, 1.0900.

EUR/USD Daily chart

EUR/USD

Overview
Today last price	1.0796
Today Daily Change	-0.0014
Today Daily Change %	-0.13
Today daily open	1.081

Trends
Daily SMA20	1.093
Daily SMA50	1.098
Daily SMA100	1.0929
Daily SMA200	1.0801

Levels
Previous Daily High	1.0877
Previous Daily Low	1.0805
Previous Weekly High	1.096
Previous Weekly Low	1.0845
Previous Monthly High	1.1276
Previous Monthly Low	1.0834
Daily Fibonacci 38.2%	1.0832
Daily Fibonacci 61.8%	1.0849
Daily Pivot Point S1	1.0785
Daily Pivot Point S2	1.0759
Daily Pivot Point S3	1.0713
Daily Pivot Point R1	1.0856
Daily Pivot Point R2	1.0902
Daily Pivot Point R3	1.0928

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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