Nick Nasad
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EUR/USD: Draghi Talks Down Euro

The EUR/USD pair has been in a down swing over the last 7 sessions.

Today, it followed up an up-day yesterday by falling back to this week's lows near 1.3145 as ECB President Draghi was speaking - and as he extended the ECB's "forward guidance".

  • The top for today came in right at yesterday's resistance at 1.3217.
  • The market structure - which I look at the 21/55 EMA's for - has begun to show a bit of loss of momentum as the 2 coil together instead of widen out, a sign that maybe the recent move needs some further pullback.
  • If we close below 1.3155, that's a sign that bears are not ready to let go of this pair, especially within the context of the daily chart which shows potential for more falls.

We should remember we have very key risk event tomorrow in the form of NFP, which will have a decisive impact in this pair.

- Nick