FXStreet (Edinburgh) – EUR/USD has recovered levels above the 1.07 mark after dropping to fresh 7-month lows on Tuesday in the 1.0680 region, all ahead of today’s speech by ECB’s M.Draghi.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair’s “outlook remains negative. The market is under pressure following its break below the May and July lows at 1.0819/08. The loss of this support has opened the way for further losses to the 1.0520, the April low and the 1.0457 March low. The intraday Elliott wave is suggesting we may see some near term consolidation ahead of further losses. In fact the Elliott wave on the 60 minute chart is implying potential for a 1.0845/1.0905 move ahead of the next leg lower”.
In addition, Chief Analyst at Danske Bank Allan von Mehren suggested “There was broad based EUR weakness in FX markets yesterday with the all important December ECB meeting drawing closer – notably EUR/USD dropped below 1.07. With both ECB’s Draghi and Constancio scheduled to speak today we could see bearish EUR sentiment extend”.
(Market News Provided by FXstreet)