EUR/USD continues to correct lower from last week’s peaks near the 1.1400 handle, currently hovering over the 1.1200 area ahead of Draghi’s speech. Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “last week rallied to the top of its short term up channel, this is located at 1.1378 today and the market is showing signs of failure in this vicinity. We note the additional TD set up suggesting that the up move will struggle here”. In addition, the research team at UOB Group suggested “As pointed out last Friday, the current rally is showing signs of slowing and a short-term top appears to be imminent. However, confirmation is only upon a break below the stoploss at 1.1180. A break below this level could lead to a pullback towards the 1.1085 support. Those who are long should continue to book some partial profit at 1.1400 (1.1330 is already a very strong resistance)”. For more information, read our latest forex news.