DRAGHI DISAPPOINTMENT SENDS THE EURO LOWER

The EURUSD pair has moved towards the 1.1700 level, after sources close to the ECB, confirmed that European Central Bank President Mario Draghi, will not be delivering any new policy messages in his upcoming speech at Jackson Hole.

Markets had been expecting the ECB head to confirm the start of monetary policy tightening at Jackson hole. The euro now trades close to the weekly price lows, ahead of the release of the meeting minutes from the Federal Reserve July interest rate decision.

The EURUSD remains bearish on an intraday basis while trading below the 1.1737 level, the pair now risks turning bearish in the medium term if price moves below the key 1.1665 level.

Key technical resistance is found at 1.1720, 1.1737, and the recent swing high, at 1.1757. Critical resistance is found at the pairs 200-week moving average, at 1.1783.

To the downside, the EURUSD has four consecutive price lows around the 1.1688 level, a move below this level should accelerate losses towards the monthly pivot point, at 1.1665.

Further EURUSD support is found at 1.1638, with key trendline support, coming in at 1.1580.