Forex: EUR/USD stalled below 1.3190; Draghi eyed

FXstreet.com (Barcelona) - As Christmas holiday season approach, and Triple witching hour gets closer for this Friday, the time to roll over for March future contracts has come, and so as last COT shows, net positions in Euro narrow to a year low with commercials holding smallest long size, while speculators, both big and small, hold the other side of the trade.

With this in mind, and opposition conservative party LDP already wining Japan elections by a landslide, EUR/USD has not moved much since previous weekly close Friday, last at 1.3160 asks, just 3 pips below mentioned close. The pair has printed a fresh 8 month and a half high at 1.3187 in early Asia-Pacífic trade, and lows at 1.3147 right after.

According to FXstreet.com Independent Analyst Richard Lee, in case EUR/USD broke above recent mentioned highs, “it would open scope for an extension higher through till the 1.3300 psychological barrier,” Richard notes, while “Any short term correction will likely be maintained by the 1.3055 figure,” the analyst says.

In case moving to the upside, Global Head of Currency Strategy at Brown Brothers Harriman, Marc Chandler, even points to a higher level, as he finds the 1.35 “a reasonable target for the bulls,” the analyst suggests.


Despite the soft economical agenda ahead for Monday, all eyes will be focused on Draghi's speech at 14:30 GMT in Brussels, due to testify about the economy at the quarterly hearing of the Committee on Economic and Monetary Affairs, while US 'fiscal cliff' news could come any time as negotiations are showing signs of progress.

One hour before ECB's President Draghi speaks in Brussels, will come NY Empire State Manufacturing Index, which could have an impact on risk appetite, with Asian share markets mostly in the light red but Nikkei index that gaped higher to fresh almost 9-month highs right below the 9.9k points, up +1.53% so far for the day.

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 securities. 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 Forex 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.

RELATED TOPICS