EUR/USD > 1.13 – Highest Since September On The Draghi Drive
EUR/USD is on the move, topping the previous highs seen in June and breaking to the highest levels since September. The high so far is 1.1304. After the initial move, the pair is struggling to take hold. The breakout is awaiting confirmation.
1.13 was last seen on election night in the US, when the pair temporarily reached this level before plunging.
The move is driven by Draghi: the president of the ECB was upbeat about the economy. While tapping on his back and noting the ECB’s actions, he said there is no more danger of deflation and began talking about reflation,
He also began talking about gradually removing stimulus: the first nod towards tapering. The speech in Sintra, Portgual, sent the pair above resistance at 1.1230, and it has been climbing since then.
Draghi’s counterpart, Janet Yellen, will be speaking in London at 17:00. Will she express optimism as well, dampening the move in EUR/USD? Or will she express worries like some of her colleagues, sending the dollar down?
Here is how the move looks on the weekly chart. Note that we still don’t have a confirmation. Markets may be waiting for Yellen.
(Click on image to enlarge)
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