- The EUR/USD rose sharply on Thursday after ECB head Mario Draghi said the bank would discuss the future of its 2-trillion-euro stimulus programme at one of its next two meetings.
- ECB President Mario Draghi sought to reassure markets that the central bank was in no rush to pare its monthly asset purchase program amid speculation it might do so later this year.
- Euro initially slipped across the bloc after the statement. But as Draghi spoke, the euro edged back above $1.1550 and euro zone bond yields gained, ostensibly on his confirmation of expectations that the taper would be discussed in autumn.
- The currency pair is trading at 1.1627 levels, it is set to decline further towards 1.1680 and later 1.1700 levels in the short term.
- To the upside, the immediate resistance can be seen at 1.1686, a break above this level would expose the pair to next resistance level at 1.1700.
- To the downside, immediate support can be seen at 1.1625, a break below at this level will open the door towards next level at 1.1568.
Resistance Levels
R1: 1.1686 (38.2% Retracement level)
R2: 1.1700 (Psychological levels)
R3: 1.1763 (23.6% Retracement level)
Support Levels
S1: 1.1625 (50% Retracement level)
S2: 1.1568 (61.8% Retracement level)
S3: 1.1476 (Daily lows)
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
