EURO Strength Diminishes on Draghi Speech
| Support | Resistance |
|---|---|
| S1: 1.1875 | R1: 1.2000 |
| S2: 1.1750 | R2: 1.2075 |
| S3: 1.1460 | R3: 1.2250 |
Essential Insights
The EURUSD has continued its move lower in the last 24 hours, making a new four-week low of 1.1715 last night. With no major European news due for the remainder of the week, we could expect this pair to find some short-term support at 1.1750, but if this level fails to hold, a move to the next support zone at 1.1460 looks likely.
Technicals
The EURUSD broke through the neckline of the daily head and shoulders pattern on Monday night and has found some support at the second support zone at 1.1750. The 1-hour chart is continuing to make lower highs and lower lows, indicating that there could be further weakness in this pair leading into the end of the month if this support zone fails to hold tonight.
Fundamentals
President Draghi failed to inspire any EURO strength with his speech earlier in the week, and with no further significant European news release scheduled, traders may have to wait until next week for any drive in the EURUSD. News out of the US tonight includes Crude Oil Inventories, Unemployment Claims and the Final GDP, expected to remain unchanged at 3%.
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