Wednesday, November 11, 2015

Draghi offers nothing new, EUR/USD recovers

FXStreet (Mumbai) - The EUR/USD recovered from the low of 1.0705 after the ECB President Draghi refrained from commenting on monetary policy in his speech at London.

Stalls near hourly 50-MA

The spike from 1.07 handle appears to have ran out of steam near its hourly 50-MA at 1.0738 levels. The common currency was ditched, while the 2-yr German yield hit a record low in anticipation of dovish comments from Draghi.

However, Draghi commented on Banking Union, but made no comments on the monetary policy. Consequently, the pair recovered off lows, but still trades on a weaker note.

EUR/USD Technical Levels

The immediate resistance is located at 1.0774 (daily high), above which gains could be extended to 1.08 levels. A break above would open doors for 1.0871 (hourly 200-MA). On the other side, a break below 1.07 would open doors for a re-test of 1.0674 (Nov 10 low).
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