Fallout from Draghi remains
The fallout from Draghi's presser on Thursday remains. Yes...the EURUSD did correct higher on Friday, but the move was minor relatively. The high reached 1.16264. That was well short of the 38.2% of the move down at 1.1660 (see chart below).
Today, the price opened lower, moved to a low of 1.1564 and rebounded in the London session to a high of 1.16238. That was short of the highs from Friday. We trade above and below 1.1600 currently. PS. the EURUSD closed around 1.1609 on Friday. So we are down on the day now.
Drilling to the price action today on the 5-minute chart, shows a tale of two bias's today. Earlier, the price spend time below it's 100 and 200 bar MAs (blue and green lines). Over the last few hours, the price has moved back above those MAs and have used those MAs to lean against for intraday buying.
So although the ceiling held against Friday's highs, there is some support buying against the MAs too. If you don't like the EURUSD, look for the break below the MAs to open the downside again. If it holds and we get more of a rally, the 1.1626 should give traders the go ahead for a test of the 38.2% at 1.1660.
A battle is on between dip buyers and the Draghi bears.
PS. there is 603M option expires at 1.1600. They expire at the top of the hour.
PSS. Draghi will be giving the opening remarks at the ECB Forum on Central Banking, in Portugal and will be speaking on Tuesday at 4 AM ET/0800 GMT and at 9:30 AM ET/1330 GMT on Wednesday with Kuroda and Powell (panel discussion).