EUR/USD unstoppable, looks to 1.1400 ahead of Draghi

Pablo Piovano FXStreet

The demand for the single currency stays everything but abated today, now pushing EUR/USD to fresh multi-month tops near 1.1370.

EUR/USD boosted by Draghi, USD-selling

Following a small drop on Monday, the pair has not only managed to revert the negative start but it has also climbed to levels last seen in June 2016 above 1.1360 ahead of the opening bell in Euroland.

Unexpected hawkish comments by President Draghi at the ECB Forum on Tuesday encouraged fresh buyers to turn up and drive spot higher, quickly leaving behind the critical 1.1300 barrier.

It is all the opposite on the USD-side. Tracked by the US Dollar Index (DXY), the buck plummeted to the 96.00 neighbourhood and is now threatening to challenge post-Trump’s win lows in the 95.90 region.

Ahead in the session, the last day of the ECB Forum in Portugal should keep markets entertained with speeches by Draghi, Kuroda, Carney and Poloz. On the data front, Italian flash CPI for the month of June could grab some attention while pending home sales and DoE’s report are due across the pond.

EUR/USD levels to watch

At the moment, the pair is gaining 0.20% at 1.1363 facing the next up barrier at 1.1434 (high Jun.24 2016) seconded by 1.1466 (high Apr.12 2016) and finally 1.1616 (high May 3 2016). On the other hand, a breakdown of 1.1218 (20-day sma) would target 1.1117 (low Jun. 20) en route to 1.1052 (55-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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