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EUR/USD hovers around 1.2850

FXStreet (Córdoba) - After hitting fresh 14-month lows at the weekly opening, EUR/USD staged a mild recovery but lacked momentum to break above the 1.2870 area as investors await a speech from ECB President Mario Draghi.

EUR/USD pulled back after hitting an intraday peak of 1.2867 and slid to the 1.2840 zone before finding support. At time of writing, EUR/USD is trading at the 1.2850 zone, 0.13% above its opening price.

Draghi's speech on tap

Draghi is scheduled to speak at 13:00 GMT and investors will be looking for any clues of the ECB asset buying program. "Market expectations are on some comments over the result of the first round of TLTRO last week, and maybe a good bunch of criticism coming from German Bundesbank President Weidmann after the weekend statements", said Valeria Bednarik, chief analyst at FXStreet.

A series of data might also offer direction to the pair. The Eurozone will release September’s consumer confidence while US will publish existing home sales data.

EUR/USD technical outlook

"Technically, the 4 hours chart maintains the bearish tone with price well below a bearish 20 SMA now capping the upside around 1.2880, and momentum retracing from its midline after correcting oversold levels: some follow through above mentioned resistance may see price extending up to next resistance at 1.2920, where sellers are expected to defend the level", said Bednarik. "On the other hand, below 1.2810, the bearish continuation may extend quickly down to 1.2770, en route to 1.2740 critical midterm support".

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