The common European currency started this trading week with a rally against the US Dollar. Today’s European trading session started with a upswing from 1.3814 up to 1.3860. So, what are the reasons of the rally and the near-term prospects of the currency pair?
EURUSD Rallies Along With GBPUSD
As we have just mentioned, the common European currency is currently following the British Pound it its effort to gain some value against the US Dollar. GBPUSD advanced from 1.6776 to 1.6831 this morning. The Pound gained some value after the media announced that Pfizer was set to purchase Astrozeneca. The Euro followed its British counterpart to consolidate its position against the American currency.
At the same time, Masterforex-V Academy reminds us that today’s speech by Mario Draghi, President of the ECB, is going to be decisive for EURUSD. The speech will act as a market driver. Experts assume that Mr. Draghi will be talking about a strong Euro and inflation issues in the eurozone.
EURUSD Prospects
According to the comprehensive technical analysis of the H4 EURUSD chart conducted by Masterforex-V Academy, the price has completed a bullish move represented by the 1.3784-1.3854 wave. There is also a reaction to it represented by the 1.3854-1.3791 move.
At this point, the price is probably developing another bullish wave – wave 3 (the pink wave count). As a result, the price managed to overcome some key levels of resistance, including 1.3850 - 61.8% a+ 76.4% and 1.3860 (64) – an MF pivot and the top of the price range.
If the currency manages to consolidate above the mentioned levels, we may well see a further rally today. If this is the case, we are likely to see the price touching 1.3898
Alternatively, the price may go down on Draghi’s statements. In this case, the price may find difficulty overcoming 1.3860 and 1.3850. If they are pinned through, the next targets will be around 1.3820(15), 1.3790 (80). These levels will hold true throughout the trading day.
