EUR/USD bounces-off 1.1350, 1.1400 back on sight ahead of Draghi

The bulls faced exhaustion after the latest upsurge, sending the EUR/USD pair sharply lower to test the mid-point of 1.13 handle, before finding fresh buyers near the last to now trade around 1.1370 levels.

The ongoing bullish run in the EUR/USD pair lost pace,  as the US yields picked up a major bid across the curve, prompting a tepid recovery in the US dollar from seven-month troughs of 95.92 struck against its main competitors last hour.

However, the retreat in the spot remains limited so far by 1.1350 barrier, as the latest upbeat comments by the ECB President Draghi delivered at the ECB Symposium continue to underpin the sentiment around the Euro.  Meanwhile, poor risk tone prevalent in the market amid rising US political worries, following the Healthcare vote delay, keeps USD the sellers in control.

Focus now remains on the Eurozone money supply data and sentiment on the European markets for further momentum on the prices, as investors gear up for another heavy day of central bankers’ speeches, including speeches by the ECB President Draghi and Fed Chair Yellen, at the ECB Sintra Conference.

EUR/USD Technical Levels

According to Karen Jones, Analyst at Commerzbank: “ EUR/USD outlook is positive : The Euro’s rebound from the 1.1110 end of May low has overcome the 1.1296 recent high and 1.1300 November high. The market has in fact gapped higher today and we would allow for the gap back to 1.1306 to be filled. The break higher target the highs from mid 2016 circa 1.1429 and the two year resistance line at 1.1467. The intraday Elliott waves counts are suggesting that dips lower will now hold in the 1.1310/1.1285 band.”