EUR/USD looks to regain 1.1200 ahead of Draghi, Yellen

Dhwani Mehta FXStreet

Having found some support near 1.1175 region, the EUR/USD pair has embarked upon a minor-recovery mode, as the bulls look to regain 1.12 handle ahead of key central bankers’ speeches.

EUR/USD: Recovery appears limited on policy divergence

The spot is seen consolidating the Asian recovery as we progress towards the European morning bells, although remains in the upper bound of today’s trading range. The greenback retraces late-Monday’s rebound against most of its major peers, as the bulls turn defensive ahead of the crucial US consumer confidence data and Fed Chair Yellen’s speech.

Despite the upbeat tone seen around the EUR/USD pair, investors remain wary whether the spot would extend the recovery above 1.12 handle, as monetary policy divergence between the ECB and Fed remains on top of the mind ahead of the speeches by the ECB President Draghi and Fed Chief Yellen.

Meanwhile, the EUR/USD pair maintains the bid tone as solid German IFO surveys continue to underpin the Euro, while downbeat US durable goods data add to the negative bias seen around the buck.

EUR/USD Technical Levels

According to Valeria Bednarik, Chief Analyst at FXStreet: “Technically, the pair has faltered once again around 1.1210/20, having been rejected from the area multiple times since June 14th. To the downside, a major Fibonacci support stands around 1.1120 while a relevant low comes at 1.1109, the price to break lower to confirm further slides ahead.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.