In the week ahead, the European Central Bank interest rate decision and a speech by ECB President Draghi will be closely watched on Thursday. On the flip side, US non-farm payroll figures for July will be released on Friday.
At the time of writing, EUR/USD sits quietly around the 1.2300 figure, with support levels noted at 1.2280, 1.2250 and 1.2220, while resistance levels lie at 1.2340, 1.2385 and 1.2410.
“In the 4 hours chart, indicators head south from extreme overbought levels, holding in positive territory,” observes Valeria Bednarik, Chief Analyst at FXstreet.com. “For the short term, watch for a break below 1.2280 to signal a short term bearish correction, while only back again 1.2340 buyers will become in control.”