FxWirePro: EUR/USD recovers after Draghi’s Hawkish statement, markets eye fed monetary policy

EUR/USD has regained more than 40 pips from the low of 1.17312. The pair hits 2.5 month high at 1.180247 yesterday and declined till 1.17240. It is currently trading around 1.17677. US has imposed 10% tariff on $200 billion of Chinese goods early this week.

ECB chairman Mario Draghi has said that “underlying inflation is expected to increase further over the coming months as the tightening labor market is pushing up wage growth”. German bund yields and Euro has shown a good jump after hawkish statement by ECB. 

Markets eye US Consumer confidence which is to be released today and Fed monetary policy for further direction.

The near term major resistance is around 1.1800 and any break above will take the pair till 1.18523 high made on Jun 14th 2018. Any convincing break above 1.18523 confirms bullish continuation and a jump till 1.1945 (200- day MA) is possible.

On the lower side, major near term support is around 1.17288 (23.6% fib) and any break below will drag the pair till 1.16700/1.1600. Any dip below 1.1500 will confirm bearish continuation.

It is good to buy on dips around 1.1750-525 with SL around 1.1700 for the TP of 1.1845/1.1940.