EUR/USD reverses sharply and turns positive above 1.1000 after Draghi


  • Euro erases losses that followed the ECB decision across the board. 
  • DXY reverses sharply amid EUR/USD rebound, turns negative. 
  • Media report Trump’s administration discussed an interim trade deal with China. 

The EUR/USD pair rebounded almost 150 pips from the lows and turned positive for the day. After the European Central Bank meeting and during Draghi’s press conference the pair bottomed at 1.0927, slightly above the YDT low, now it stands around 1.1040, up 30 pips for the day. 

The Euro rebounded across the board and boosted EUR/USD to 1.1068, the highest intraday level in a week. Again it failed to hold on top of 1.1060 and pulled back. Despite moving off lows the tone is still favorable to the Euro, that managed to erase all the bearish pressure. 

The European Central Bank cut rates for the first time since 2016 as expected, and also launch a new round of bond buying. “The ECB announced a package of easing measures, but Draghi’s detailed message was less dovish than the initial easing announcement implied. We think more easing will be in store in December, which will keep downside pressure on bond yields”, said Nordea analysts. The “less dovish” message was a key driver in the Euro’s recovery. 

In the US, Bloomberg reported that the Trump administration discussed offering a limited interim deal to China in order to delay and roll back some tariffs to Chinese goods. The negotiations might take place over the next weeks. The report boosted equity prices but the rally did not last long. 

Levels to watch 

To the upside, the key short-term resistance continues to be the 1.1060 area. A consolidation on top would point to further gains for the Euro. The next resistance stands at 1.1115. 

On the flip side, 1.1015 is again the immediate support,  while below 1.0990 the bearish pressure will likely intensify. Then comes 1.0955 that protects September lows at 1.0925. 
 

 

EUR/USD

Overview
Today last price 1.106
Today Daily Change 0.0046
Today Daily Change % 0.42
Today daily open 1.1014
 
Trends
Daily SMA20 1.1058
Daily SMA50 1.1138
Daily SMA100 1.1186
Daily SMA200 1.1265
Levels
Previous Daily High 1.1056
Previous Daily Low 1.0985
Previous Weekly High 1.1085
Previous Weekly Low 1.0926
Previous Monthly High 1.1251
Previous Monthly Low 1.0962
Daily Fibonacci 38.2% 1.1012
Daily Fibonacci 61.8% 1.1029
Daily Pivot Point S1 1.0981
Daily Pivot Point S2 1.0948
Daily Pivot Point S3 1.091
Daily Pivot Point R1 1.1051
Daily Pivot Point R2 1.1089
Daily Pivot Point R3 1.1122

 

 

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