EUR/USD eases to 1.1070, focus on Draghi

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The upside momentum around the single currency has run out of steam around 1.1140 vs. the dollar yesterday, allowing EUR/USD to recede to the1.1070 area so far.

    EUR/USD weaker ahead of Draghi

    Comments by New York Fed’s Dudley on Wednesday have triggered a wave of selling interest in the greenback, allowing a violent upside in the pair to test the 1.1140 area, or 4-month tops.

    However, the upside impetus met sellers in the mid-1.1100s, forcing spot to fade part of the spike and return to the current area of daily lows in the 1.1075/70 band ahead of the speech by President Draghi and board member Y.Mersch.

    Across the pond, Factory Orders and the weekly report on the US labour market will be in the limelight.

    EUR/USD levels to watch

    The pair is now retreating 0.31% at 1.1074 facing the next support at 1.1054 (200-day sma) followed by 1.0902 (20-day sma) and finally 1.0777 (post-ECB low Jan.21). On the other hand, a breakout of 1.1146 (high Feb.3) would target 1.1496 (high Oct.15) and finally 1.1713 (post-PBoC high Aug.24).

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