EUR/USD approaches 1.18 on upbeat PMIs, Draghi

EUR/USD is now giving some signs of life around 1.1770 following the speech by President Draghi in Lindau and positive results from PMIs in the euro bloc.

EUR/USD volatile on data, Draghi

Spot made an attempt to the 1.1780 region after French, German and EMU advanced manufacturing PMIs are expected to come above expectations for the month of August.

Further news cited President Draghi saying at his speech in Lindau that monetary policy must always be ready for new challenges, all amidst heightened anxiety among traders over potential signs towards ‘tapering’ in the medium term.

On the data front, flash Markit’s PMI is due across the pond along with new home sales and the speech by Dallas Fed R.Kaplan (voter, hawkish).

EUR/USD levels to watch

At the moment, the pair is advancing 0.24% at 1.1789 facing the initial hurdle at 1.1830 (high Aug.21) followed by 1.1846 (high Aug.11) and finally 1.1894 (high Aug.3). On the flip side, a breach of 1.1661 (low Aug.17) would target 1.1641 (5-month up trend) en route to 1.1611 (low Jul.26).