6 Feb 2014
EUR/USD steadies around 1.3600 after steep rally
FXStreet (Córdoba) - The EUR/USD stabilized around 1.3600 after a steep rally triggered by Draghi's speech as no new actions were announced.
ECB President said at a press conference that the bank continues to monitor money markets closely and it is determined to take decisive action if required. Draghi downplayed suspension of SMP sterilization and said inflation expectation remain firmly anchored, showing no concerns on deflationary pressures.
Against this backdrop, the EUR/USD rallied from a low of 1.3480 to a high of 1.3618 to finally settle in a slim range around 1.3600 where it has spent the last hours, recording a 0.5% gain on the day.
EUR/USD technical outlook
"The technical picture has turned strongly bullish at least in the short term, albeit considering the pair added near 140 pips in 2 hours, further gains should remain limited, moreover ahead of tomorrow US employment data", says Valeria Bednarik, chief analyst at FXStreet. "Immediate support stands at 1.3590, ahead of 1.3550 but dips down to this last seem not likely right now, as buyers will likely surge on approaches to the first".
ECB President said at a press conference that the bank continues to monitor money markets closely and it is determined to take decisive action if required. Draghi downplayed suspension of SMP sterilization and said inflation expectation remain firmly anchored, showing no concerns on deflationary pressures.
Against this backdrop, the EUR/USD rallied from a low of 1.3480 to a high of 1.3618 to finally settle in a slim range around 1.3600 where it has spent the last hours, recording a 0.5% gain on the day.
EUR/USD technical outlook
"The technical picture has turned strongly bullish at least in the short term, albeit considering the pair added near 140 pips in 2 hours, further gains should remain limited, moreover ahead of tomorrow US employment data", says Valeria Bednarik, chief analyst at FXStreet. "Immediate support stands at 1.3590, ahead of 1.3550 but dips down to this last seem not likely right now, as buyers will likely surge on approaches to the first".