Euro Posts Massive Gains, Moves Past 2016 High, Backed by Draghis Comments
Forex News: As the market expected, the ECB maintained its interest rate unchanged but during the press conference, ECB President Mario Draghi mentioned that a hike in autumn is possible. The Euro responded positively to the comments and the pair rebounded from session lows, breaking resistance.Technical Outlook
After completing a retracement that almost touched the 50 period Exponential Moving Average, the pair pushed higher, breaking last year’s high at 1.1616 fuelled by Draghi’s comments. The uptrend is now resumed and the pair is headed for the next resistance located around 1.1700 but it won’t move there in a straight line and pullbacks will most likely occur. For today we expect small bounces to the downside or a ranging session with a bullish bias.Fundamental Outlook
Today the Euro and the US Dollar have a light economic calendar, without any major news releases, so the deciding factor will be the technical aspect.
The pair had a mixed trading session yesterday, first breaking below the 50 period Exponential Moving Average and then returning to the line. The British Retail Sales came out slightly above expectations but this only created a brief period of volatility.Technical Outlook
If the pair will break the 50 period Exponential Moving Average to the upside, the outlook will become bullish once again and we will probably see a break of 1.3030, followed by a move into 1.3100 next week. On the other hand, a bounce lower from the 50 EMA will confirm the initial break and will make 1.2900 the first target.Fundamental Outlook
The United Kingdom didn’t schedule any major economic releases for the final trading day of the week, so the technical side will prevail.