EUR/USD stabilizes around 1.0740

FXStreet (Edinburgh) - The correction from session highs near 1.0780 in EUR/USD seems to have now stabilized around the 1.0745/40 band.

EUR/USD keeps gains ahead of Draghi

The pair is now attempting some consolidation ahead of the European open on Wednesday, keeping the buoyant tone in the mid-1.0700s after dropping as low as the 1.0680 area on Tuesday.

In the meantime, market participants will closely follow today’s Draghi’s speech in order to find clues regarding the possibility of further easing by the European Central Bank at next month’s meeting, either via its QE programme or rate cuts.

EUR/USD levels to watch

As of writing the pair is advancing 0.28% at 1.0745 facing the next resistance at 1.0943 (downtrend from 1.1496) ahead of 1.0988 (76.4% Fibo of 1.1496-1.0706) and then 1.1088 (200-day sma). On the flip side, a breach of 1.0658 (low Apr.21) would open the door to 1.0600 (psychological level) and finally 1.0519 (low Apr.13