EURUSD broke the slightly bullish trend and even tested the below 1.17 levels. Traders are divided with the rising US Covid cases and FED’s possible tapering. On Friday and Saturday, the Jackson Hole meeting may give hints about the time and composition of tapering and members’ future expectations about rate increases. It is unclear, however, if Powell will reveal his hand or not amid rising cases and debt ceiling discussions.
EURUSD still looking bearish even over the 1.17. The short-term downtrend 1.1731 is limiting the up moves for now and the price may start to fall again if this continues. 1.1610 will be crucial for medium-term direction.
For a more bullish look, above 1.1731, the previous top 1.18 and the upper line of the trend channel 1.1865 can be followed as key short-term resistance.