Currency Analyst since 2010

EUR/USD is above $1.3350

EUR/USD opened the week with a 55-pip gap up and is now consolidating in the $1.3360/80 range, at the highest levels since the end of August. The pair’s now above the 200-week MA at $1.3350. US dollar weakened as former Treasury Secretary Lawrence Summers quitted the race the race to lead the Fed damping the expectations for an early halt to expansionary monetary policy.

The ECB president Mario Draghi is due to speak in Berlin today at 8:00 GMT and gains in euro may be limited ahead of this event.Draghi said on Sept. 12 that policy makers are committed to keeping interest rates low for an extended period and the economy doesn’t justify the rise in some money-market rates. The head of the ECB will likely remain dovish. There’s some divergence on the H4 chart.

Resistance lies at $1.3400, $1.3415 and $1.3450. Support is at $1.3345, $1.3324, $1.3300 (bottom of the gap) and $1.3280.

Chart. Daily EUR/USD

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