EUR/USD: pressuring highs on Draghi's words

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1565

The EUR/USD pair recovered its upward momentum after ECB's latest monetary policy announcement, as the market chose to read the positive headlines and ignore the negative ones. Having traded as low as 1.1479, the pair jumped up to 1.1573, as Draghi promised to discuss changes in guidance in the fall. Policymakers have unanimously decided so, and to keep the ongoing policy unchanged. The press conference started with Draghi saying that recent data confirmed economic strengthening and broad recovery, yet he quickly added that “very substantial accommodation is still needed." He also expressed concerns over inflation being on its way to their target, but not yet there.

The pair holds near the mentioned high after the US opening, and despite dollar's decline is limited against other rivals, the pair is poised to extend its advance towards fresh 2017 highs. In the 4 hours chart, technical indicators have turned north entering bullish territory, with the RSI indicator at 64 anticipating additional gains as the price surpassed a bullish 20 SMA. Beyond the yearly high set at 1.1582, the pair will likely accelerate higher with the market then eyeing 1.1713, 2015 high.

Support levels: 1.1525 1.1490 1.1460

Resistance levels 1.1585 1.1615 1.1650

View Live Chart for the EUR/USD

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.

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