EUR/USD stays near lows around 1.1800, Draghi’s speech eyed

The shared currency is now alternating gains with losses vs. the greenback on Thursday, with EUR/USD now hovering over the 1.1800 neighbourhood.

EUR/USD looks to ECB, Catalonia

Spot is retracing part of the overnight spike to weekly tops in the 1.1840/45 band, although some decent support emerged in the boundaries of 1.1800 the figure for the time being.

Cautiousness persists among traders in light of the imminent ECB meeting, where a move on rates is ruled out but an announcement of the modification of the size and/or duration of the current bond-buying programme is likely.

Back to Catalonia, separatist leader C.Puidgemont is expected to give a press conference later today where he could call for elections.

On the USD-side, market participants seem to have left behind initial concerns over the dispute among Republicans over Trump’s tax reform proposal, prompting the US Dollar Index (DXY) to revert the negative start of the session and regain the 93.70 area, up smalls for the day.

EUR/USD levels to watch

At the moment, the pair is losing 0.02% at 1.1810 and a break above 1.1858 (high Oct.20) would target 1.1882 (high Oct.12) en route to 1.1911 (high Aug.2). On the flip side, the next support is located at 1.1725 (low Oct.23) seconded by 1.1686 (low Oct.6) and finally 1.1662 (low Aug.17). In addition FXStreet’s technical confluence indicator (TCI) notes important resistance area around 1.1860/70, where coincide pivot points and Fibo retracement.