The EUR/USD extended its year decline to 1.2826 with the Asian opening, but managed to advance some afterwards, posting so far a daily high of 1.2867. Trading midrange, EUR traders await for Draghi speech in a couple hours, and any clue he may give on economic policy. Market expectations are on some comments over the result of the first round of TLTRO last week, and maybe a good bunch of criticism coming from German Bundesbank President Weidmann after the weekend statements.
Risk on the pair remains to the downside, albeit Draghi’s wording can lift intraday volatility; technically, the 4 hours chart maintains the bearish tone with price well below a bearish 20 SMA now capping the upside around 1.2880, and momentum retracing from its midline after correcting oversold levels: some follow through above mentioned resistance may see price extending up to next resistance at 1.2920, where sellers are expected to defend the level. On the other hand, below 1.2810, the bearish continuation may extend quickly down to 1.2770, in route to 1.2740 critical midterm support.
View Live Chart for EUR/USD
Risk on the pair remains to the downside, albeit Draghi’s wording can lift intraday volatility; technically, the 4 hours chart maintains the bearish tone with price well below a bearish 20 SMA now capping the upside around 1.2880, and momentum retracing from its midline after correcting oversold levels: some follow through above mentioned resistance may see price extending up to next resistance at 1.2920, where sellers are expected to defend the level. On the other hand, below 1.2810, the bearish continuation may extend quickly down to 1.2770, in route to 1.2740 critical midterm support.
View Live Chart for EUR/USD
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