EUR/USD bounces-back to 1.1780, Draghi’s speech in focus

• Looks to 1.1800 as USD selling resumes in Europe.
• A jump in Eurozone July Sentix investor confidence boosts the Euro.

The EUR/USD pair continues to closely track the US dollar price-action so far this Monday, having bounced-off the 1.1750 support in a bid to retest the 1.18 handle.

EUR/USD: Will the rebound sustain on Draghi’s speech?

The US dollar faded the bounce versus its main competitors and resumed the recent bearish bias, offering a fresh boost to the EUR/USD pair, as the spot extends its winning streak into a fifth day today. Meanwhile, the USD index reversed an uptick to near 94 handle and now flirts with 3-1/2 week lows of 93.74 amid slower-than-expected US wage growth and looming US-Sino trade war concerns.

The common currency derives support from upbeat Eurozone Sentix investor confidence data, which came in at 12.1 for July versus 8.2 expected. Moreover, markets prefer to hold the Euro, as they remain expectant of some hawkish remarks from the European Central Bank (ECB) President Draghi’s testimony on the economy and monetary policy before the European Parliament Economic and Monetary Affairs Committee due at 1300 GMT

EUR/USD Technical Levels

Nenad Kerkez, Head of Technical Analysis and Trading  Elite CurrenSea, notes: “We can see that the market is above the POC zone and order block. A retrace to the POC 1695-1.1720 could provide the pair with a fresh buying momentum. New sellers are probably waiting within the zone, however, a 4h candle close is needed above 1.1792 for a further continuation up. Next target is 1.1840 zone. A drop below 1.1645 might target 1.1600 and 1.1564 and the pair will be neutral to bearish again.”