EUR/USD: Bulls conquer 1.17 handle ahead EZ GDP, Draghi’s speech

USD meets fresh supply on Fed Evans’ comments.
Regains 1.1700, but for how long?
ECB Draghi’s speech, Eurozone flash GDP and German ZEW in focus.

Dhwani Mehta FXStreet

The EUR/USD pair found fresh buyers once again near 1.1660 support area, and from there the bulls regained poise, marching higher to conquer 1.17 handle at last.

EUR/USD supported at 5-DMA of 1.1661

The spot extends its corrective rally from four-month lows into a fifth day today, in response to persistent broad based US dollar weakness amid uncertainty over the US tax reform plans.

Over the last hour, the Treasury yields turned lower across the curve, after the comments from the FOMC member Evans re-ignited worries over the inflation outlook, in turn dragging the US dollar further into losses against its main competitors. The USD index drops -0.14% to print daily lows at 94.27, closing in Monday’s bullish gap seen at Sydney open.

The spot finally broke its Asian range-trade to the upside, with the bulls now expecting some hawkish remarks from the ECB Chief Draghi’s speech for the next push higher. Meanwhile, expectations of improvement in the German ZEW economic sentiment and Eurozone flash GDP steadying in Q3, also provide extra legs to the latest upmove.

EUR/USD Technical Levels

Slobodan Drvenica at Windsor Brokers Ltd., noted: “Lift above 100SMA target (1.1731) would open way towards 55SMA (1.1795) and daily cloud base (1.1815).
Rising hourly cloud (cloud is spanned between 1.1653 and 1.1636) and 10SMA (1.1636) continue to underpin the advance and violation of these supports would turn near-term structure negative.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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