EUR/USD Still Below 1.1500 Ahead of Draghi
EUR/USD keeps its upside bias unchanged on Monday, although a break above the 1.1500 barrier still remains elusive.
EUR/USD now looks to Draghi, US ISM
The pair navigates the area of 2016 peaks around 1.1480 ahead of the key US ISM Manufacturing and speeches by FOMC’s Lockhart and Williams, as well as the speech by President M.Draghi and board member S.Lautenschlager.
In the meantime, USD-selling continues to bolster the ongoing up move in spot, accelerated in response to the inaction seen by the Fed at last week’s meeting.
According to CME Group FedWatch, the probability of a Fed’s rate hike is a meagre 11.3% in June and 26% in July.
EUR/USD levels to watch
The pair is now up 0.34% at 1.1493 and a break above 1.1500 (psychological level) would target 1.1713 (high Aug.24 2015). On the flip side, the immediate support aligns at 1.1346 (20-day sma) followed by 1.1213 (low Apr.25) and then 1.1211 (55-day sma).