EUR/USD Prediction for August 29, 2016

The EUR/USD moved lower as a hawkish tone from Yellen made investors perceive that the Fed chair might vote to raise rates when the FOMC meeting in September. Fed Chair Yellen said the case for a rate hike has “strengthened” in recent months in her Jackson Hole speech. The economy is nearing its employment and inflation goals. She reiterated that policy is not on a pre-set course, and that it is data dependent.

The EUR/USD sliced through support near the 10-day moving average at 1.1282, with resistane seen near the August highs at 1.1366.  Momentum is poised to turn negative as the MACD (moving average convergence divegence) index is poised to generated a sell signal.  The trajectory has turned native, as the dollar gained traction.  The RSI is moving lower with price action reflecting accelerating negative momentum.