The EUR/USD began the day on Friday with a strong rebound of more than 40 pips that made it jump again above 1.1800 to reach a maximum of 2 days at 1.1822. In the European opening, the crossing has lost ground, falling to the vicinity of 1.1790.
The euro awaits Draghi
The common currency struggles to hold around 1.1800. In the coming hours, the speech that Draghi will offer in Frankfurt under the title “Europe in a new era: How to take advantage of opportunities” will be key. Later, the Eurozone will release its current account data and finished construction products. Finally, the USA will reveal the number of home starts and building permits for October, in addition to the Kansas Fed’s manufacturing activity index.
With the crossing now trading above 1.1790/95, 0.21% above its opening price, a break above the day’s high at 1.1822 would point to 1.1860 (November 15th high), putting the euro en route to 1.1882 (maximum of October 12th).
On the downside, the next support is at 1.1745 (100-day simple moving average), seconded by 1.1690 (21-day simple moving average) and finally 1.1554 (November 7th minimum).
Written by: FXStreet