EUR/USD: Draghi fails to surprise, focus shifts to FOMC
EUR/USD Current price: 1.1191
The EUR/USD pair hovers right below the 1.1200 level, having been trading in a well limited 50 pips range ever since the day started. Investors were hoping to get some clues from ECB's Draghi, as the leader of the Central Bank offered a speech on Financial Stability, but Super Mario failed to surprise markets. He acknowledged that the macroeconomic environment is improving, yet at the same time, backed once again QE, indicating that so far "has proven effective," and that there are no reasons to deviate from the current path.
Earlier today, Germany released its latest GFK consumer confidence survey that came in at 10.4 from previous 10.2, its highest since October 2001, and in line with continued growth in the region. The ECB released its Financial Stability Review report, which showed that policymakers are concerned over retrieving QE too early or too fast, highlighting the risks around it and of possible market panic. Still pending of release and what markets are waiting for, are the FOMC Minutes.
Technically, the pair has made not much progress from the previous updates, with the 4 hours chart showing that the price remains below a bullish 20 SMA, while technical indicators lack directional strength, stuck around their mid-lines. The pair has an immediate support at 1.1160 and below it, the pair can move further lower, although the longer term bullish tone persists. A recovery above 1.1220, on the other hand, should lead to a new leg higher that can extend up to 1.1295/1.1300.c
Support levels: 1.1200 1.1160 1.1120
Resistance levels: 1.1220 1.1260 1.1295
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
