EUR/USD steady around 1.1760, Draghi eyed
The single currency is navigating within a tight range on Wednesday, taking EUR/USD to the mid-1.1700s ahead of the opening bell in Euroland.
EUR/USD attention to PMIs, Draghi
The pair is so far extending the consolidative theme this week, coming down from recent tops above the 1.1800 handle while some support emerged in the 1.1730 region.
Yesterday’s strong pick up in the demand for the greenback dragged spot nearly a cent lower after news cited the White House could be making progress in the promised tax reform plans. Tracked by the US Dollar Index (DXY), the buck has now run out of some impetus and is looking to stabilize in the mid-93.00s.
Looking ahead, advanced PMIs in the euro zone for the current month are due seconded by the speech by President M.Draghi at the 6th Liindau Meeting on Economic Sciences (Lindau, Germany). Market participants will closely follow this event looking for any hints regarding a potential tapering in the next months.
Across the pond, flash Markit’s PMI is due along with new home sales and the speech by Dallas Fed R.Kaplan (voter, hawkish).
EUR/USD levels to watch
At the moment, the pair is retreating 0.03% at 1.1757 and a breach of 1.1661 (low Aug.17) would target 1.1641 (5-month up trend) en route to 1.1611 (low Jul.26). On the other hand, the initial hurdle aligns at 1.1830 (high Aug.21) followed by 1.1846 (high Aug.11) and finally 1.1894 (high Aug.3).