EUR/USD (current price: 1.0630)
European Central Bank governor Mario Draghi gave a relatively hawkish speech on Monday. The governor didn’t hint on new monetary measures by the central bank. The speech led to a modest rally in the pair, with no crucial releases coming out from the Eurozone or the U.S. yesterday. The cross remains in a steep short-term downtrend, despite the positive day. The prior long-term lows near 1.0475 are still close to the current rate after the two bearish weeks since the U.S. election.
Our assessment: The cross is trading around the 1.06 level this week, well below the 200-day Moving Average. The long-term picture is still neutral, although the cross is near the bottom of the trading range.
