Draghi’s speech preview: What to expect of EUR/USD

FXStreet (Córdoba) - European Central Bank President Mario Draghi is due to speak during the European evening, at 19:00 GMT and investors will be paying close attention for further clarity regarding a possible action in December

Latest ECB meeting raised speculation the ECB could expand its QE program in December. Today’s speech could shed light on the bank’s intentions.

If Draghi offers further hints more easing is on its way, the euro could face strong selling pressure. On the other hand, he could talk down more QE bets, which could see a recovery of the shared currency, although the upside remains limited given Fed’s contrasting stance.

The Federal Reserve left the door open to a December rate hike last week, which shifted attention to US data, specially the NFP report due on Friday.

EUR/USD technical levels

EUR/USD technicals still favor the downside. In terms of technical levels, immediate supports could be faced at 1.0896 (Oct 28 low) and 1.0847 (Aug monthly low) ahead of 1.0800 (psychological level). On the flip side, short-term resistances are seen at 1.1071 (Oct 30 high), 1.1095 (Oct 28 high) and then 1.1107 (200-day SMA).
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