Following the anti-climax of Friday’s Jackson Hole Symposium, price has kept within a narrow range into the European open. With US markets closed for Labor Day, attention will fall squarely on the European session which sees German and EU PMI at 07:53 and 07:59 GMT respectively and ECB President Draghi scheduled to speak to 13:30 GMT. Whilst not directly relevant for the pair, in such a thin environment there may be the potential for cross pair reactions. Ilan Azbel of Autochartist believes that the pair is subject to some downside pressure following a break out of a 4 hour Triangle pattern and can now look at 78.06 as an upcoming level of support. Forex Ticket analysts also see short term pressure for the pair, with a range between 78.35 and 78.20 coming into play this morning.
European stocks have opened lower whilst commodities remain higher.