- The pair is posting small gains above the 1.1400 handle.
- The greenback remains under pressure near 95.80.
- President M.Draghi expected to speak later in the day.
EUR/USD has started the week on a positive note, extending last Friday’s advance to the low-1.1400s early in the Old Continent.
EUR/USD looks to Draghi
Spot is advancing for the second session in a row on Monday, adding to Friday’s gains and looking to consolidate the recent breakout of the critical 1.1400 the figure, always amidst the renewed and strong selling bias surrounding the buck and the upbeat momentum in the risk-associated universe.
Moving forward, President Draghi is due to speak later in the session while ECB’s M3 Money Supply figures and Private Sector Loans are also due in the region.
What to look for around EUR/USD
The recent ECB’s revision lower in risks facing the economic outlook in the region will surely increase the relevance of upcoming data, while today’s message from Draghi should fall in line with those views. In addition, concerns over the US-China trade deal and the potential slowdown in the global economy remain key drivers for investors’ sentiment in the next months. On the political side, the upcoming EU parliamentary elections in May should start picking up some attention in the near term, while the social scenario in France and developments from the populist government in Italy should also add to the prevailing cautiousness among market participants.
EUR/USD levels to watch
At the moment, the pair is gaining 0.07% at 1.1414 facing the next hurdle at 1.1425 (high Jan.28) seconded by 1.1442 (38.2% Fibo of the September-November drop) and finally 1.1449 (100-day SMA). On the other hand, a breach of 1.1289 (2019 low Jan.24) would target 1.1269 (monthly low Dec.14 2018) en route to 1.1215 (2018 low Nov.12).
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