Forex News: Euro in the Spotlight: ECB President Draghi Testifies Twice
Forex News: Friday’s price action was characterized by a sharp climb that nearly touched 1.1825 resistance but soon after, the pair slowed down and consolidated below 1.1800. The U.S. construction data was better than anticipated but the impact was limited.
The pair has now printed a lower high and failed to break the resistance at 1.1825, which shows that upwards momentum is fading. This means that we will possibly see an encounter with Friday’s low at 1.1756 but overall today we expect the pair to remain between 1.1825 and 1.1756 support unless Draghi’s testimony offers surprises.
The day’s only notable event is the double testimony of ECB President Mario Draghi, before the European Parliament Economic and Monetary Affairs Committee. The topic is economy and monetary policy, so volatility is likely to increase during his speech, which is scheduled at 2:00 pm GMT.
Two hours later, at 4:00 pm GMT, the ECB President will testify again before the same Committee, but this time the topic will be the European Systemic Risk Board. Caution is advised during both speeches.
The pair accelerated to the upside early during Friday’s session, only to drop abruptly soon after without apparent reason other than fresh sell orders.
Price is advancing higher but the pair is prone to sharp moves to either side. As long as 1.3175 support remains intact, the upside movement is likely to continue but overall we expect choppy price action. The levels to watch are Friday’s top at 1.3260 and the support mentioned earlier, together with the 50 period Exponential Moving Average.
The United Kingdom didn’t schedule any economic releases for today, so the technical side will take center stage.
Written by: Bogdan Giulvezan
The article above is based on the writer’s 7-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.