The EUR/USD recovered slightly from the daily lows as the ECB President Draghi, while speaking at Davos, failed to provide fresh dovish surprises.
Trades above 50-DMA
The pair now trades above its 50-DMA at 1.0824 levels. Draghi did say that the diverging monetary policy path adopted by the ECB and the Fed is likely to stay for a while. However, this is not something the market did not know.
Hence, the spot recovered from the low of 1.0813. The focus now is on the German PMI manufacturing and Eurozone manufacturing PMI release.
EUR/USD Technical Levels
The immediate support is seen at 1.08, under which the pair could revisit previous session’s low of 1.0777. A break lower would expose 1.0748 (23.6% of 1.1495-1.0517). On the other hand, a break above 1.0859 (Jan 19 low) could see the pair re-test 1.09 levels.
