EUR/USD: moderate Draghi keeps EUR pressured
EUR/USD Current price: 1.1876
The EUR/USD pair fell down to 1.1863 during London trading hours, hit by negative headlines coming from Germany. Despite Angela Merkel's party stood victorious in the general election, the votes gotten were short of the sufficient majority to rule the country, now forced to form a coalition. Besides, the far-right got around 12.6% of the vote, entering the Parliament for the first time since WWII. The German IFO survey released earlier today was a disappointment, as the September business climate index came in at to 115.2 from a previously revised 115.7 and against the 116.00 expected, with both, expectations and the assessment of the current situation below market's expectations and previous figures, which suffered downward revisions.
Ahead of Wall Street's opening, ECB's head, Mario Draghi, is testifying before the Committee on Economic and Monetary Affairs of the European Parliament. The published speech shows that the Central Bank is confident on local growth, as the economic expansion is firm and broad based, but reiterated the need of easing measures. Guess he doesn't want to see the EUR higher today. US equities are poised to open with a soft tone, which may affect the dollar somehow.
In the meantime, the pair extended its decline by a couple of pips, so far having bottomed at 1.1861. The pair broke below a daily ascendant trend line coming from mid August, but holds a few pips below it, also below all of its moving averages in the 4 hours chart, leaning the scale towards the downside, but without confirming it, as technical indicators in the mentioned time frame hold within bearish territory, with no directional strength.
Support levels: 1.1860 1.1820 1.1770
Resistance levels: 1.1890 1.1930 1.1960
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.
