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3 Apr 2014
EUR/USD collapses after Draghi speech
FXStreet (San Francisco) - The Euro is falling apart against the US Dollar following Mario Draghi's speech where he said "ECB had a 'rich' discussion on rates, QE." the EUR/USD declined 85 pips in a matter of minutes from from 1.3805 to trade at daily lows around 1.3720.
ECB’s Draghi said the euro bloc is recovering in line with the Council’s views, and that the central bank expects a period of low inflation although consumer prices should gradually pick up. In the same line, Draghi confirmed that inflation expectations remain firmly anchored and that inflation risks are broadly balanced. He however stressed that the Council unanimously decided to use unconventional tools should the situation so requires it (QE not off the table).
EUR/USD sentiment
Currently, EUR/USD is trading at 1.3725, down -0.30% on the day, having posted a daily high at 1.3807 and low at 1.3718. EUR/USD spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bullish.
RSI is in neutral territory at 48.15, down from its last hourly close at 51.88, while ADX is ranging above 30 at 9.54, down from 12.68 at the last hourly close.
Levels to watch
Current price is 1.3725, with resistance ahead at 1.3730 (Monthly Low), 1.3741 (Weekly Low), 1.3753 (Yesterday's Low) and 1.3766 (Hourly 20 EMA). Next support to the downside can be found at 1.3718 (Daily Low), 1.3711 (Daily Classic S2) and 1.3683 (Daily 100 SMA).
ECB’s Draghi said the euro bloc is recovering in line with the Council’s views, and that the central bank expects a period of low inflation although consumer prices should gradually pick up. In the same line, Draghi confirmed that inflation expectations remain firmly anchored and that inflation risks are broadly balanced. He however stressed that the Council unanimously decided to use unconventional tools should the situation so requires it (QE not off the table).
EUR/USD sentiment
Currently, EUR/USD is trading at 1.3725, down -0.30% on the day, having posted a daily high at 1.3807 and low at 1.3718. EUR/USD spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bullish.
RSI is in neutral territory at 48.15, down from its last hourly close at 51.88, while ADX is ranging above 30 at 9.54, down from 12.68 at the last hourly close.
Levels to watch
Current price is 1.3725, with resistance ahead at 1.3730 (Monthly Low), 1.3741 (Weekly Low), 1.3753 (Yesterday's Low) and 1.3766 (Hourly 20 EMA). Next support to the downside can be found at 1.3718 (Daily Low), 1.3711 (Daily Classic S2) and 1.3683 (Daily 100 SMA).