EUR/USD breaks 1.1950 head of Draghi’s speech

The EUR/USD is having a boost as the USD bull trend is having a pause.
Mario Draghi, the European Central Bank’s President spoke in Florence and did not refer to monetary policy.

The EUR/USD is trading at around 1.1958 up 0.30% on Friday as the USD is on the back foot amid Draghi’s speech. The President of the European Central Bank spoke in his home country, Italy, and discussed reducing and sharing risk in the euro-zone. He refrained from talking about monetary policy.

In the European session, the single currency tested 1.1890 to find buyers which brought the pair up to 1.1958 in the first part of the American session.

In a speech, earlier on Friday, Fed’s Bullard said “potential for increased business investment could allow faster growth without inflation”, which is a rather dovish comment and could be another reason not to raise rates.

Meanwhile, USD is currently consolidating its three-week advance. Earlier in the week, the US core inflation came slightly below expectations while last Friday, the NFP also came below estimates.

EUR/USD 4-hour chart

The medium-term is bearish although bulls have a strong case for a reversal up. Immediate resistance is seen at the 1.1950 psychological level and then at the 1.2000 handle. Support is seen at 1.1910 and at 1.1870 demand levels. The pair is challenging the 50-period simple moving average on the 4-hour chart.

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