The greenback is back on the defensive after yesterday’s recovery. This week, the US currency came under an intense pressure amid Trump’s criticism, and the bulls still fail to regain control as traders are nervous ahead of the key event of this week – Powell’s speech at Jackson Hole.
The Fed’s chair testament will set the tone not for USD pairs only, but for the global financial markets as well. Investors hope that Powell will confirm the central bank’s commitment to further rate hikes, despite the recent Trump’s comments. And the solid US fundamentals justify this path for now.
So, positive rhetoric by the Federal Reserve governor could open the way for an ascent in the buck across the board, while the potential highlight of the consequences from the US-China trade war is a risk for the greenback. As such, the EYRUD pair, which faced intraday resistance at 1.1580, could target the 1.15 level again, after a break below the 20-DMA at 1.1530.