EUR/USD: Will it regain 1.1400 ahead of more Draghi?

The bullish momentum behind the common currency extends into Asian trades this Wednesday, driving the EUR/USD pair further north to print fresh yearly tops of 1.1356.

Over the last hours, the bulls appear to take a breather and consolidate the latest upmove, awaiting further hints from the ECB President Draghi on the monetary policy approach, as he speaks again today at the European Central Bank (ECB) Forum on Central Banking, in Portugal.

On Tuesday, EUR/USD rallied almost 170 pips on the back of hawkish remarks delivered by the ECB Chief Draghi at an ECB symposium, citing that softer inflation is temporary, while adding that “the threat of deflation is gone and reflationary forces are back in play.” Draghi also hinted that stimulus withdrawal amid a broadening economic recovery across the Euro area.

On the other hand, the US dollar was hit broadly amid reports of a delay in the Senate vote on the US Healthcare plan, which pushed the Wall Street stocks lower alongside the treasury yields. Meanwhile, the buck also ignored Yellen’s comments and slumped to multi-month lows. At the time of writing, the USD index flirts with fresh seven-month troughs of 96.03.

Ahead of Draghi’s speech scheduled later today at 1330GMT, the spot will take cues from the Eurozone money supply data, sentiment on the European markets and US goods trade balance figures.

EUR/USD Technical Levels

According to Valeria Bednarik, Chief Analyst at FXStreet: “ In the 4 hours chart, technical indicators have decelerated, but maintain their bullish slopes within overbought territory, with the RSI indicator currently at 80, while far beyond the current level, the 20 SMA accelerated north, crossing above the 100 SMA, another sign of the dominant bullish momentum. Support levels: 1.1260 1.1220 1.1190 Resistance levels: 1.1300 1.1340 1.1380.”