EUR/USD headed to 1.1860 on broad USD weakness? Draghi’s speech eyed

The EUR/USD pair caught a fresh bid-wave in Asian and swung back higher above 1.18 handle, mainly driven by broad-based US dollar weakness, as investors brace for the ECB President Draghi’s speech for fresh impetus.

EUR/USD: Will the bulls retain control above 1.1800?

The spot staged a solid rebound amid aggressive selling seen in the US dollar across the board after the US political jitters surrounding the Trump’s election campaign resurfaced on the WSJ reports. The report stated that Special Counsel Robert Mueller’s team issued the subpoena last month for documents containing specified Russian keywords from more than a dozen officials.

More so, the latest headlines on North Korea aggressively working on a ballistic missile submarine weighed down on the risk sentiment, lifting the safe-havens such as gold, Yen, and Euro broadly higher.

However, it remains to be seen if the major can sustain the renewed uptick above 1.18 handle, as the Euro is seen paring gains on the news that the German coalition talks have been delayed until Friday noon  amid persisting disagreements between the pro-business Free Democrats (FDP) and the environmentalist Greens.

Focus now remains on the ECB President Draghi’s speech due later in Europe amid a lack fresh economic news from the Euroland, while the US housing data will also draw some attention in the NA session.

EUR/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet, noted: “In the same (4-hour) chart, technical indicators have retreated from overbought readings, with the Momentum indicator still heading south within positive territory but the RSI now consolidating around 61, somehow limiting the risk of a steeper decline, at least as long as the price holds above 1.1745, the 38.2% retracement of the mentioned rally. A recovery beyond 1.1800, on the other hand, will open doors for a retest of the recent highs, and even further gains towards 1.1890.”