EUR/USD flirting with daily highs around 1.1920
- The pair now gathers extra steam and test session tops in the 1.1920 area.
- The buck remains parked in the 92.70 area amidst lower US yields.
- ECB’s Mario Draghi next of relevance in Euroland.
Following an ephemeral drop to sub-1.1900 levels earlier in the morning, EUR/USD has now regained some attention and is toying with daily highs in the 1.1920/25 band.
EUR/USD now looks to Draghi
The pair is extending the rebound from Wednesday’s fresh YTD lows in the 1.1825/20 band, not only regaining the 1.1900 handle but also moving further to clinch daily highs in the 1.1920/25 region.
The continuation of the correction lower in the buck, particularly after yesterday’s lower-than-expected inflation figures in the US economy during April, is fuelling the up move in spot so far, which met initial hurdle in the proximity of 1.1950 on Thursday, area coincident with the 10-day sma.
Later in the session, President Draghi is due to speak in Florence later in the afternoon, while Import/Export Prices, the flash print of Consumer Sentiment and the speech by San Francisco Fed J.Williams (voter, centrist) are all due in the NA session.
EUR/USD levels to watch
At the moment, the pair is up 0.06% at 1.1922 and a break above 1.1944 (10-day sma) would target 1.1946 (high May 10) en route to 1.2019 (200-day sma). On the flip side, immediate support aligns at 1.1823 (2018 low May 8) seconded by 1.1768 (78.6% Fibo of November-February up move) and finally 1.1718 (monthly low Dec.12 2017).