Because of Powell, EUR/USD is settling below the $1.0800 zone

<p>&nbsp;The speech of Federal Reserve (Fed) Chairman Jerome Powell and the President of the European Central Bank (ECB) at the Jackson Hole symposium event last week was in focus.</p><p><br /></p><p>Does it affect the movement of the US dollar and the Euro?</p><p><br /></p><p>Powell delivered hawkish monetary policy guidance, where the central bank said it would still need to raise interest rates higher to bring inflation down to target levels, but would proceed cautiously at its September meeting.</p><p><br /></p><p>The US dollar appears strong following the market's reaction to Powell's statement.</p><p><br /></p><p>Meanwhile, the Euro currency is seen not to react significantly to Lagarde's more neutral speech.</p><p><br /></p><p>He noted that the current tight monetary policy is likely to be maintained for a longer period to achieve the central bank's 2% inflation target.</p><p><br /></p><p><br /></p><p><br /></p><p>On the price chart of the EUR/USD currency pair, investors observe the reaction of price movements in the last sessions of last week.</p><p><br /></p><p>The price initially rose when the US dollar weakened first before the event started, the price rose to the 1.08400 level.</p><p><br /></p><p><br /></p><p>Then, the US dollar strengthened after the indication of the speech from Powell at the same time pressured the price to fall back to the level of 1.07700 which became the lowest level in the last 2 months.</p><p><br /></p><p>The price closed the trade at the end of the last session by bouncing back to the 1.08000 zone and the price hovered slowly around that at the opening of the first session earlier this week.</p><p><br /></p><p>The price pattern is considered to remain in a bearish trend with movement below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart since last week.</p><p><br /></p><p>A further decline will be expected after this from the 1.08000 zone towards the next concentration zone of 1.07000.</p><p><br /></p><p>Prices will also continue to record new lows if the US dollar remains strong this week and also if the United States (US) economic data is published strongly.</p><p><br /></p><p>But if otherwise, the price can bounce back past the MA50 barrier to signal a change in the price trend.</p><p><br /></p><p>The rise in price will head back to the 1.09000 zone to test the resistance that also failed to break through last week.</p>