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EUR/USD is now challenging the minor resistance line of 1.3740, recovering from the lows it has seen late last week when Draghi laid his heavy hand on the common currency.

A series of ECB speakers did not leave the notion that Quantitative Easing is really on the table and some even suggested that it is not even in the nearby table. The euro does have room to rise before ECB members will become worried once again about the exchange rate.

Here is how this recovery looks on the chart:

EURUSD recovering April 7 2014 technical forex chart for currency trading forex

European Central Bank Vitor Constancio said that “extraordinary policy cannot be considered lightly”. This sums up the long list of speakers from the Frankfurt based institution. It is quite unclear if the ECB is ready to introduce QE and even harder to assess how this will actually work.

Another member, Yves Mersch, went to greater length by saying that QE is a theatrical idea. Well, if it exists only theory for the European Bank and it continues being reality for the Fed, BOE and BOJ, the single currency “loses” in the currency wars by not participating in them.

So, after opening the week around the previous levels of 1.37, above the swing low of 1.3670, EUR/USD is struggling with minor resistance at 1.3740. Further lines are 1.38 and 1.3830 to the topside and 1.3650 on the downside. For more, see the EURUSD forecast.

Yet it is important to note that Draghi did not talk solely about QE, but also mentioned other things. Most importantly, he upped the rhetoric ante regarding the exchange rate.

So, if EUR/USD continues rising, the same ECB members that pushed it higher can certainly send it back down.

Further reading:  EUR/USD: Trading the US JOLTS Job Openings