The Euro lacked a clear directional bias as expected, while traders await the Fed Chairman Powell’s speech at the Jackson Hole Symposium. The dollar index has already declined by nearly 10% in the past five months. Therefore, we think that further dovish tone seem less probable and Powell disappointing the markets has a higher chance. If Powell falls short of signaling higher tolerance for above-target inflation, then the US dollar will likely pick up a strong bid, pushing the pair lower towards 1.17 which is also the 200-period SMA and the 4-month trend line.
Support: 1.1785 / 1.17
Resistance: 1.1850 / 1.19
