Draghi was Dovish

What’s in Store for the EUR/USD Post-ECB?

Posted Monday, June 18, 2018 by
Rowan Crosby • 1 min read

The EUR/USD was certainly in focus last week and it was Mario Draghi that did the most damage. All the talk in the lead up to the ECB meeting was the fact that QE was to be ending. Sure enough, the ECB President came out with a very dovish press conference and appeared very hesitant to wind things up.

As a result, the EUR copped a hammering and ended up trading at a 1.16 handle.

This week the calendar is a little lighter. We have only German manufacturing which is out on Friday in terms of the top-tier economic data.

Mario Draghi will be speaking again this week, however, I would not expect him to be saying anything new.

Much of the attention will be turning to how the USD plays out after the tariff announcement in the US on Friday. And then what the market thinks of the chances of QE ending in the Eurozone.


Technical Outlook

Fortunately for the EUR/USD price did manage to get a bit of a bounce on Friday. We traded down to 1.1550 and things were starting to look pretty bleak.

However, we closed out the week around the 1.1600 level, which is a positive.

I’m not expecting much from the EUR/USD this week. And I can see further downside ahead.

1.1500 is a huge level for me. It sits just beneath the recent swing lows and if it gets taken out we could well be in for some big moves to the downside. Especially if the USD can fight through the trade wars.

EUR/USD – 240 min Chart.


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