Investing.com – The trend in EUR/USD remains bearish on Monday morning, although the currency pair is currently trying to climb back above the 1.08 level, after having been at a low for more than two months at 1.0766 last Friday.
Recall that last week was especially marked by the intervention of Fed boss Jerome Powell at the Jackson Hole symposium. Indeed, Powell was more hawkish than investors had expected, saying the central bank won't hesitate to raise rates further if inflation warrants, and repeating that his next moves will depend on the data. .
Against this backdrop, investors in Forex and elsewhere began to doubt the prospect of an end to the Fed's rate hike. Although the market still sees no rate hike as the most likely scenario for the upcoming September meeting, all bets are high on a resumption of rate hikes in November.
In this context, the Dollar naturally strengthened, sending EUR/USD lower.
This week, the currency pair will still have to deal with some busy and potentially very influential news, including the Fed's favorite inflation measure (PCE price index) on Thursday, and the NFP report on US job creation. of August on Friday.
Given Powell's remarks last week, again emphasizing the importance of data, these top stats will come under scrutiny more than ever. close, and better than expected numbers could push EUR/USD down.
Technical thresholds to watch on EUR/USD
From a graphical point of view, a declining trend line visible since the July 18th annual high confirms the negative bias on EUR/USD. In the short term, the currency pair is hesitating around the 1.08 level, where the 200-day MA is also located.
The first important support to consider will be last week's low at 1.0766, after which the currency pair could aim for the 1.07 level and then the low from May 31 towards 1.0635.
On the upside, the 1.0835/1.0850 area is the first significant hurdle, but only a move back above 1.09 would begin to rein in question the bearish bias on the daily chart.
EUR/USD threatens to fall further, PCE and NFP at the center of forex attention
