EUR/USD technical analysis: Looks south after the weakest weekly close since May 2017

• EUR/USD registered its weakest weekly close since May 2017.
• Bearish lower highs setup on the daily chart favors a drop to 1.10. 

EUR/USD is on the defensive, having closed at 1.1089 on Friday, the weakest weekly close since May 2017.

The daily chart shows the pair repeatedly faced rejection above 1.1230 in the six days to Aug. 13 and fell back to 1.1066 on Friday.

The bearish lower high created above 1.12 indicates the path of least resistance is to the downside. A below-50 print on the 14-day relative strength index and the moving average convergence divergence histogram's move below zero also favor further downside in the pair.

So, the pair could drop to the psychological support of 1.10 over the next few days. As of writing, the spot is trading at 1.1087, having hit a high of 1.1101 earlier today.

Daily chart

Trend: Bearish