Following a slide down to 1.1181, a fresh weekly low, the EUR/USD pair quickly recovered the ground lost, as European equities bounced by the hand of a recovery in Deutsche Bank equities. The stock recovered over 3% in early trading, and is now up 1.85%, after a German newspaper reported that the government and financial authorities are preparing a rescue package, if the bank can't raise extra capital on the market. Risk aversion retreated during the past American session, as consumer confidence in the US, rose to its highest in nine years, pushing Wall Street higher.
Later on the day, FED's Yellen is due to testify on supervision and regulation before the Committee on Financial Services, while a few minutes later, ECB's Draghi will speak about current developments in the euro area, in Frankfurt. He already offered the introductory speak, to a meeting called the European Central Bank’s first Annual Research Conference (ARC), again calling from some structural reforms, to rise rates "safely away from the lower bound." The US will also release its Durable Goods Orders for August ahead of the opening.
As for the technical outlook, the 4 hours chart shows that the price is struggling to surpass its moving averages that anyway remain all together and with limited upward strength, indicating the absence of a clear dominant trend. Technical indicators in the same time frame have turned modestly higher, but remain below their mid-lines, while the price seems unable to enter positive territory daily basis, limiting chances of a stronger advance.
A daily descendant trend line, coming from 1.1615, this year high, has been containing rallies ever since mid August, and today stands around 1.1260, while multiple intraday highs and lows are located in the 1.1280 region. Should the price advance beyond this last, the rally can extend up to 1.1335, en route to 1.1365.
Renewed selling pressure below 1.1190, should see the decline extending down to 1.1160, while below this last, 1.1120 comes next.
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