Euro remains rangebound
The last four weeks have seen EUR/USD remain rangebound between $1.26 and $1.24, with the top end of the range correlating with the 50-day moving average.
Currency traders will, this morning, have the ability to listen to European Central Bank president Mario Draghi as he speaks at the twenty-fourth European Banking Congress. Of course, it is likely that any references to ‘whatever it takes’ and ‘QE’ could be contradicted by either the Deutschebank president Jens Wiedmen or German finance minister Wolfgang Schaeuble. The likelihood of contradictory statements points towards another day spent range trading.
The lows from 17 November, around of $1.2450, could offer support, while a move above $1.2560 might require more stimulus than the markets can offer.