EUR/USD firmer above 1.0600 ahead of Draghi

The shared currency is now looking to consolidate today’s breakout of the 1.0600 handle vs. the buck, with EUR/USD navigating the 1.0630/40 band so far.

EUR/USD focus on Draghi

The pair is extending the bounce off Friday’s fresh 2016 lows near 1.0560, although the bull run seems to have run out of legs in the mid-1.0600s for the time being, allowing the ongoing sideline theme near 1.0630.

The softer note around the greenback has given some respite to the pair’s decline, which has extended for eleven sessions in a row since the area of 1.1150 seen earlier in the month.

However, the current strength in EUR should be temporary, as the bullish prospects for the greenback stays unchanged along with rising expectations of a Fed’s rate hike next month.

Adding to the near-to-medium term negative view, EUR speculative net shorts remain at high levels, albeit receding from recent tops during the week ended on November 15.

EUR/USD levels to watch

The pair is now up 0.47% at 1.0639 and a break above 1.0763 (high Nov.16) would aim for 1.0826 (high Nov.14) and then 1.0848 (low Oct.25). On the flip side, the initial support aligns at 1.0567 (2016 low Nov.18) followed by 1.0538 (low Dec.3 2015) and then 1.0519 (low Apr.13 2015).

To learn more about this topic, check our video analysis: