EUR/USD Price Prediction for August 25, 2016

The EUR/USD tumbled on broader dollar strength ahead of this Friday’s speech by Fed Chair Janet Yellen in Jackson Hole Wyoming.  The exchange rate was able to hold support levels near the 10-day moving average at 1.1259. Resistance on the currency pair is seen near the August highs at 1.1360.  Traders appear to be nervous that the Fed Chair will mimic the Vice Chair’s comments over the past weekend and take a hawkish tone.

Momentum has turned neutral, which is reflected by a positive printing MACD (moving average convergence divergence) index which is offset by a negative trajectory.  The RSI (relative strength index) moved lower with price action reflecting accelerating negative momentum, which points to a lower exchange rate.