Draghi Speaks, EUR/USD Trades Near 1.1950 Handle - Forex News by FX Leaders
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Draghi Speaks, EUR/USD Trades Near 1.1950 Handle

Posted Friday, May 11, 2018 by
Shain Vernier • 1 min read

Earlier today, ECB President Mario Draghi delivered an academic speech on behalf of the European University Institute. Anytime the head of a central bank issues commentary traders take note. However, this speech did not address monetary policy facing the Euro. Since the engagement, the EUR/USD has traded largely sideways in the vicinity of 1.1950.

Next Tuesday is going to be a big day for the EUR/USD. With Germany and the Eurozone releasing the Q1 GDP numbers, the market will learn more about the economic environment in Europe.

A few hours later on Tuesday, U.S. Retail Sales numbers are due out. Expectations are modest, but this release may surprise. If you are trading the EUR/USD, be sure to circle the Tuesday session on your calendar.

EUR/USD Technicals

The bulls are on a two-day winning streak in the EUR/USD. Depending on today’s close, price may close above 1.1910 for the second consecutive day.

EUR/USD
EUR/USD, Daily Chart

A converging Bollinger MP and Daily SMA is an indication that the intermediate-term downtrend is beginning to slow down. If this is the case, we could see a test of topside resistance on next week’s economic data releases.

Here are the levels to watch for early next week:

  • Resistance(1): 38% Retracement of Current Wave, 1.2048
  • Support(1): Psyche Level, 1.1900
  • Support(2): Swing Low, 1.1822
  • Support(3): Macro 38% Retracement, 1.1708

Overview: Going into the weekend, I have a keen eye on the 38% retracement of the current bear run (1.2048). In the event price closes strong today, this area will be a premium trade location to the short for the Monday/Tuesday sessions.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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