Shares 102 Views

EUR/USD weaker near 1.0700 on USD, Draghi

The demand for the single currency remains subdued at the beginning of the week, with EUR/USD now receding to the boundaries of the 1.0700 handle, or session lows.

EUR/USD offered on USD-buying

Spot has surrendered its Friday’s gains and keeps flirting with 2-day lows in the 1.0700 neighbourhood amidst quite a strong rebound of the greenback, which has recovered the psychological 100.00 handle when tracked by the US Dollar Index (DXY).

EUR has so far found decent support around the 1.0700 area for the time being, where sit the 20-day sma, the short-term support line and the 38.2% Fibo of the Nov-Jan down move.

A dovish (at least not hawkish) tone from President Draghi at his testimony before the European Parliament today is also collaborating with the around-a-cent decline (from Friday’s tops near 1.0800).

In fact, Draghi stressed that the central bank remains ready to increase its APP in size/duration, confirming at the same time the monthly purchase pace of €60 billion from April to December 2017.

Furthermore, Draghi reiterated that the recent up tick in inflation figures are largely due to higher energy prices, while underlying inflation pressures remain ‘very subdued’.

EUR/USD levels to watch

The pair is now losing 0.57% at 1.0722 and a break below 1.0706 (38.2% Fibo of Nov-Jan decline) would open the door to 1.0693 (20-day sma) and finally 1.0617 (low Jan.30). On the upside, the initial hurdle sits at 1.0800 (high Feb.3) followed by 1.0829 (high Feb.2) and then 1.0848 (low Oct.25 2016).

You may be interested

Schnorr Signatures – Another step after SegWit
Bitcoin
shares26 views
Bitcoin
shares26 views

Schnorr Signatures – Another step after SegWit

Brian Evans - Jan 20, 2018

Signature aggregation is a very hot topic for most Bitcoin Developers, as they are trying to implement a way to help the network save resources, and improve…

Blockchain is making way for all companies
Crypto
shares35 views
Crypto
shares35 views

Blockchain is making way for all companies

Brian Evans - Jan 20, 2018

Everyone has had a genius business idea at some point or another. Most ideas come from looking around and identifying ways life could be made better. That’s…

Drone Saves Two Children from Drowning in Australia
Australia
shares33 views
Australia
shares33 views

Drone Saves Two Children from Drowning in Australia

Brian Evans - Jan 20, 2018

Drone technology has always been intriguing to industry experts and enthusiasts alike. In fact, it seems the idea of using drones in the real world may finally…

Most from this category

%d bloggers like this: