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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