Euro higher ahead of Draghi speech
The pair touched a ten-month high on 18 January before retracing back toward a 61.8% a range in which it continues to trade. The pair however remains above it's 50 and 200 simple moving average on the daily.
Expectations are divided over the ECB president's speech. Draghi may aim to dampen the EUR rally in order to realign the Euro zone's export competitiveness in the global market following the actions of the US Federal Reserve, and most recently the Bank of Japan (BoJ), both of which are seeking a weaker currency to spur economic activity.
However, should Draghi's sentiment be one of positivity, a move higher in the EUR/USD is likely. Another bullish indicator for a move higher in the EUR is the recent trend in German bunds, which currently mirrors the EUR/USD, also trading in a consolidation phase at $143.64 and $142.46 after posting a high of $146.16 in December 2012.
A push above the previous high of $1.3404, should see the bulls push the market all the way to a Fibonacci extension level of 1.3494.
Story provided by StockMarketWire.com