EURUSD clings to gains near 1.2370 as speeches by ECB members are anticipated. What else is revealed in the 8 February EURUSD Technical Forecast?
8 February, GKFX – The persistent bid tone surrounding the greenback forced EUR/USD to briefly visit the mid-1.2200s during early trade, fresh 2-week lows.
EUR/USD focused on ECB
The pair is extending the correction lower so far on Thursday and remains on its way to close the first week with losses after seven consecutive weeks with gains.
The solid pick up in the demand for the US Dollar plus higher US yields amidst increasing volatility plotted against any meaningful bullish attempt in the pair, which stays depressed in sub-1.2300 levels and risks a potential test of the key 1.2160 region.
ECB-speakers next of relevance in the docket
Looking ahead, EUR should be under the microscope in light of speeches by ECB members Weidmann, Villeroy, Mdersch and Praet. In the US calendar, initial claims are due as usual along with speeches by Dallas Fed R.Kaplan (hawkish), Philadelphia Fed P.Harker (hawkish), Minneapolis Fed N.Kashkari (dovish) and KC Fed E.George (2019 voter, hawkish).
8 February EURUSD Technical Forecast
At the moment, the pair is up 0.01% at 1.2263 facing the immediate support at 1.2167 (50% Fibo of the 2014-2017 drop) seconded by 1.2165 (low Jan.18) and finally 1.2048 (55-day SMA). On the other hand, a breakout of 1.2316 (21-day SMA) would target 1.2388 (10-day SMA) en route to 1.2524 (high Feb.1).
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