ECB President Mario Draghi takes the stage for a second time in a row this week. EUR is on surge, inching up above 1.1800 ahead of Draghi.
EUR in Spotlight
After hitting a good 1.1800 level and above earlier this week against the USD, the European currency inched up higher as we’re approaching the weekend, pushing the EURUSD to previous tops at 1.18555 levels and above.
Investors are keeping their eyes and ears wide open to President Mario Draghi due to speak today at the European Banking Forum taking place in Frankfurt. EURUSD has seen some selling today after surging to fresh 5-week tops, shedding some pips and dropping to 1.1795 levels where some decent support seems to have established.
Meanwhile, the USD is under massive selling pressure due to the uncertainty hovering above the US political environment. According to an article published by the Wall Street Journal, Special Counsel R. Mueller issued a subpoena for Trump’s campaign documents , which served the greenback on a silver platter to the bears.
The House Republican voted their tax bill on Thursday, leaving it now up to the Senate to pass it. The uncertainty revolving around the US tax reform is another reason for the dollar’s weakness against the surging single currency.
In the meantime, EUR bulls are eagerly awaiting for some impetus from Draghi’s speech today, followed by BuBa J. Weidmann.
Technical Outlook on EURUSD
EURUSD counts up pips, hovering above 1.18190 levels en route to 1.18375. However, traders need to keep an eye on the resistance and support levels around 1.1862 (R3), 1.1839 (R2), 1.1817 (R1), 1.1773 (S2) and 1.1751 (S3).