EUR/USD was already under pressure due to some dollar strength. Weak US data such as poor factory orders failed to cheer it up. Rate hike expectations in the US are on the rise.
And then came Draghi: while the president of the ECB didn’t really say anything new, he certainly left the door open for more action in December. And he’s not done yet. The second out of three speeches is coming soon. Will EUR/USD break below 1.09?
Among the things that Draghi said yesterday (and may repeat quite soon) is that the ECB will meet its price stability mandate and that the Governing Council is willing and able to act by using all the instruments available within its mandate.
And regarding December, he clearly pointed out to a re-examination of policy come December. It’s one month to go until December 3rd, and the pressure is on.
Here is the EUR/USD chart. Support awaits at 1.09, followed by the all important line of 1.0810. This is the post recovery low seen back in July. Resistance awaits at 1.10, followed by 1.1070..
More: EUR/USD: Breach Of Flag Formation; – SocGen
Share
