EUR/USD turns negative near 1.1380

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The upside momentum in EUR/USD seems to have found strong resistance in the area of 1.1450/60, fresh 2016 tops.

    EUR/USD attention to Draghi

    A neutral tone from yesterday’s FOMC minutes has allowed the pair to snap a 2-day negative streak on Wednesday and to extend the optimism into the European session today, albeit for a brief period of time.

    In fact, the rally stalled in the boundaries of 1.1460, prompting sellers to step in and drive spot lower to the current 1.1385/80 band ahead of the speech by ECB’s M.Draghi, which seems to have gained in relevance in light of the EUR appreciation following the March meeting.

    EUR/USD levels to watch

    The pair is now down 0.14% at 1.1385 and a break below 1.1327 (low Apr.6) would target 1.1291 (23.6% Fibo of 1.0820-1.1437) en route to 1.1266 (20-day sma). On the other hand, the initial hurdle aligns at 1.1454 (2016 high Apr.7) ahead of 1.1496 (monthly high Oct.15 2015) and then 1.1713 (high Aug.24 2015).
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