Euro fails to rise against USD 29/8/2022

Mixed trading dominated the movements of the euro against the US dollar at the end of trading last week, under the influence of the speech of the Federal Reserve Chairman at the Jackson Hole Forum.

Technically, the euro hit the pivotal resistance level published during the previous report, located at 1.0080, which forced it to return to the official descending path again, as we expected, towards 0.9930.

With a closer look at the 4-hour chart, we find the simple moving averages continuing their negative pressure on the price from above, and this comes with clear negative signs on the RSI and its stability below the 50 mid-line.

With intraday trading remaining below 0.9970 and, in general, below 1.0000, the bearish scenario remains the most likely, knowing that the decline below 0.9910 extends the euro’s losses, so we will be waiting for 0.9865 an initial price station that may extend its bearish targets to visit 0.9810.

Surpassing the upside and consolidating above 1.0040 can thwart the bearish scenario mentioned above, and we may witness slight attempts to recover with an initial target starting at 1.0080.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 0.9865	R1: 1.0040
S2: 0.9805	R2: 1.0150
S3: 0.9695	R3: 1.0210