EURUSD falls to a two-month low and is set to fall for the sixth week in a row.

The EURUSD pair is under selling pressure for the second day in a row on Friday, falling to its lowest level. Since June 14 during the Asian session. Spot prices are now trading in the 1.0785-1.0780 range, down 0.25% on the day, and are set to end in the 1.0785-1.0780 range. The red for the sixth week in a row.

The Fed hawkish views are in spotlight.

The Federal Reserve (Fed) policymakers’ hawkish views overnight leave the door open. For another 25 basis point (bps) hike by the end of the year, lifting the US Dollar (USD) to a more than two-month high.

Aside from that, expectations that the European Central Bank (ECB) would end its nine-year sequence of rate rises in September damage the common currency and contribute to the negative tone around the EURUSD pair.

EURUSD Technical Outlook

Technically, the negative trend has sent spot prices below the critical 200-day Simple Moving Average (SMA) for the first time since November 2022. This might be interpreted as a new trigger for negative traders, bolstering possibilities for a EURUSD prolongation. The pair is over a one-month-old declining trend from a roughly 17-month top. Which was reached on July 18.

Having said that, the Relative Strength Index (RSI) is on the edge of entering oversold territory. As a result, caution is warranted ahead of Fed Chair Jerome Powell’s speech. On Friday and ECB President Christine Lagarde’s presentation on Saturday at the Jackson Hole Symposium. Nonetheless, the fundamental background implies. That the EURUSD pair’s path of least resistance is to the downside.

Furthermore, a convincing break and acceptance below a technically critical 200-day SMA adds weight to the bearish case. As a result, a following drop towards the next key support between 1.0750-1.0745, en route to the 1.0700 round-figure barrier, appears to be a definite possibility. SomeFollowing selling might expose the May 2023 swing bottom in the 1.0635 zone.

On the other hand, any intraday rebound above the 1.0800 round-figure level may now be viewed. As a selling opportunity, with the price remaining limited in the 1.0840 range. This is followed by the supply zone of 1.0870-1.0875. Which if strongly cleared might neutralize the bearish view. The EURUSD pair might then seek to break over the 1.0900 round-figure level and challenge the