EUR/USD stuck in a range, around mid-1.2400s ahead of Draghi’s speech


   •  Surrenders upbeat EZ PMI led early gains. 
   •  Reviving USD demand seemed to cap up-move. 
   •  US ISM PMI and Draghi eyed for fresh impetus.

The EUR/USD pair struggled to build on early up-move and has now retreated around 25-30 pips from session tops. 

The pair did attempt to build on its post-NFP rebound from the 1.2400 neighborhood and was being supported by a modest US Dollar retracement. This coupled with today's better-than-expected final EZ PMI prints lifted the pair to an intraday high level of 1.2475. 

The up-move quickly ran out of steam amid reviving USD demand, despite a sharp retracement in the US Treasury bond yields. Traders also seemed to refrain from placing aggressive bets and preferred to wait on the sideline ahead of the ECB President Mario Draghi's testimony. 

Valeria Bednarik, American Chief Analyst at FXStreet notes: “ECB's President Draghi is due to testify on the ECB's Annual Report  before the European Parliament, and investors will be looking for clues on upcoming ECB's decision on monetary policy.”

Currently hovering around mid-1.2400s, the US ISM non-manufacturing PMI for January might also help traders grab some short-term trading opportunities ahead of today's key event risk. 

Technical outlook

Valeria further writes: “The pair presents a neutral-to-positive stance in the short term, as in the 4 hours chart, the pair is hovering around a modestly bullish 20 SMA, but holding above the 1.2390 level, the 23.6% retracement of its January rally. In the same chart, technical indicators have bounced from their mid-lines, maintaining upward slopes although below their previous highs. the 1.2480 level is the immediate resistance, ahead of the multi-year high set last January at 1.2536. Beyond this last 1.2570 comes next. To the downside, 1.2425 the daily low is the immediate support, ahead of the mentioned Fibonacci level at 1.2390.”
 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD chops around amid end-of-month flows, ahead of Trump

EUR/USD is battling 1.11, close to the two-month highs amid choppy trading. Hopes for a fiscal boost in Europe and mixed satisfactory data have supported the currency pair. , Sino-American tensions are rising and investors await President Trump's China announcement.

EUR/USD News

GBP/USD advances amid US dollar weakness, shrugging off concerns

GBP/USD is trading above 1.23, edging higher amid US dollar weakness and Britain's gradual reopening. Intensifying Sino-American tensions and the Brexit impasse are ignored. 

GBP/USD News

Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures