EUR/USD is trading in the $1.3785 area after it reached $1.3810 yesterday, the highest level since the end of October. Euro’s supported ahead of the ECB President Mario Draghi’s speech that starts at 08:00 GMT. The single currency has climbed this far as concerns about the disinflation in the euro area and more easing from the European Central Bank abated.
Also watch the euro zone’s industrial production at 10:00 GMT – a rebound’s expected (forecast +0.4% vs. previous -0.5%). French CPI at 07:45 GMT may show growth. The ECB will release its monthly bulletin at 09:00 GMT. In the US there will be a bunch of important data at 13:30 GMT (retail sales, unemployment claims and import prices).
Resistance lies at $1.3830 and $1.3940/60 (50% retracement of the move down from 2008 and the 5-year resistance line). Support is at 41.3775, $1.3700, $1.3626 and $1.3600. Commerzbank says that the bulls will dominate the market until EUR/USD trades above $1.3555.
Chart. Daily EUR/USD