Euro Pairs Await Mario Draghi Speech

• 29 Sep 2017

EUR/USD

The EUR/USD daily chart shows the pair testing the 1.172 price level and bouncing back in a more bullish direction. Volatility has been low for the past few trading sessions with volume declining and momentum indicators showing that sentiment is moderately bullish. Today’s current trading session indicates indecision in the pair ahead of Mario Draghi’s speech later in the day.

Impact event: Mario Draghi speaks at 17:15 GMT+3 which will impact all Euro pairs.

EUR/GBP

The EUR/GBP pair has touched and retraced from the 0.874 price level. Additionally, RSI has reached the 30 oversold line indicating that a bullish reversal is a possibility. MACD still suggests that momentum is with sellers however, but appears to be flattening. An inverse hammer candle in yesterday’s trading session further confirms that a trend reversal may be imminent.

Impact event: Governor Carney speaks at 17:45 GMT+3 and statements will likely impact GBP pairs.

EUR/CAD

The 20-period EMA appears to be acting as support for the EUR/CAD pair. Selling pressure is evident especially during yesterday’s trading session and if the bearish sentiment continues, the pair could target the 1.456 price level. MACD appears to be turning more positive yet still remains below the zero line and RSI has flattened at the 50 support level. Fundamental factors are likely to have a greater impact on the pair in today’s European/U.S. session.

EUR/JPY

The EUR/JPY has dropped back from a previous market high of 134.21 with the 20-period EMA acting as a support level for the pair. Price action will likely remain in range between the 131.23 and 134.21 price levels in the near-term. Fundamental factors may spur the pair into a breakout from the relative indecision displayed for the current week of trading.