FOREX NEWS: MARIO DRAGHI STEALS THE SPOTLIGHT ONCE AGAINEUR/USD
Forex News: Yesterday’s trading session started with Euro bulls in control of the pair, on the back of a better than anticipated value of the German Manufacturing PMI. However, the bears came back strong in the second part of yesterday and almost nullified previous advances.Technical Outlook
A move that appeared to be a valid break of resistance was soon reversed and price traveled south of 1.3830 once again. This erratic movement suggests that the market is still in a state of indecision and that both bullish and bearish moves can occur. The main levels to watch today are 1.3900 as resistance and 1.3760 as support and stronger moves are anticipated, especially at the time of Mario Draghi’s speech.Fundamental Outlook
ECB President Mario Draghi will speak today at a conference held in Amsterdam and as always, his speech can be a good source of volatility and strong moves, especially if he will talk about ECB’s future monetary policy. The speech is scheduled at 9:00 am GMT and an hour earlier, the German Ifo Business Climate will be released, with an anticipated decrease from 110.7 to 110.5. This is a survey of about 7,000 businesses, which acts as a gauge of optimism so usually, higher than anticipated numbers are beneficial for the Euro.
Later in the day, at 12:30 pm GMT, the United States will release the Durable Goods Orders (orders for goods with a life expectancy of at least three years). Te anticipated value is 2.1% while the previous was 2.2% and under normal circumstances, a decrease would weaken the US Dollar.GBP/USD
For almost the entire duration of yesterday’s trading session, the Pound weakened against the greenback and overall price action trended smoothly downward.Technical Outlook
The strong resistance located at 1.6820 pushed the pair lower yesterday and by doing so, it also showed us that the long term uptrend is beginning to waver. For today’s trading session we anticipate a move below 1.6750, a fact which would also signify a big victory for the bears. Considering the fact that we are still in an uptrend from a long term perspective, another move into 1.6820 is not out of the question.Fundamental Outlook
The United Kingdom didn’t schedule any important economic indicator releases today so price action will be mostly influenced by the technical aspect and by the US event mentioned earlier.