EUR/USD firmer above 1.1800, Draghi eyed
- USD sell-off lifted spot back above 1.18.
- US politics behind the USD drop.
- Draghi speaks in Frankfurt.
The selling pressure around the greenback has gathered extra pace at the end of the week, motivating EUR/USD to regain the 1.1800 handle and beyond during the Asian session.
EUR/USD now focused on Draghi
After climbing as high as the 1.1860 earlier in the week, or fresh 5-week tops, the pair met some sellers that forced it to recede to the 1.1760/50 band, where some decent support seem to have emerged.
In the meantime, the greenback continues to suffer the instability around the US political scenario. In fact, according to a WSJ’s story, Special Counsel R.Mueller issued a subpoena for Trump’s campaign documents, triggering a sell off in the buck.
Regarding the US tax reform, House Republican approved its bill on Thursday and it is now the Senate’s turn to pass its bill. Uncertainty around the tax reform has ben rising as of late, representing another driver for the weakness in USD.
Event-wise today, ECB’s President M.Draghi will speak in Frankfurt at the European Banking Congress, along with BuBa’s J.Weidmann.
EUR/USD levels to watch
At the moment, the pair is gaining 0.37% at 1.1814 and a breakout of 1.1822 (high Nov.17) would target 1.1860 (high Nov.15) en route to 1.1882 (high Oct.12). On the downside, the next down barrier aligns at 1.1745 (100-day sma) seconded by 1.1690 (21-day sma) and finally 1.1554 (low Nov.7). In addition, FXStreet’s Technical Confluences Indicator (TCI) is noting an important support zone in the 1.1760 area, where sit a pivot point, an hourly low and a monthly Fibo retracement.