EUR/USD focus on Draghi’s speech
The EMU’s investor confidence gauged by the Sentix index is expected to have improved to -10.0 from -11.6 during June, although still in the negative ground. In the opinion the Westpac Global Strategy Group, “ Relative growth weighs on the pair even more post-US NFP. Draghi’s new forward guidance also hurts. However if the Eurogroup helps calm nerves over Greece then support at 1.2750 should hold near term. Still sell rallies to 1.2950/1.3000 on the week, scope for 1.26 later in July”.
EUR/USD levels to watch
The pair is now advancing 0.18% at 1.2835 facing the next hurdle at 1.2916 (high Jul.5) ahead of 1.2980 (MA10d) and finally 1.3000 (psychological level). On the flip side, a breakdown of 1.2806 (low Jul.5) would open the door to 1.2796 (low May.17) and then 1.2765 (weekly cloud base).