FXStreet (Córdoba) - Following fresh yearly lows and a sideways phase, the EUR/USD gathered pace and stretched to new daily highs as media reports suggest ECB action is not expected next week.

Following Draghi’s speech in Jackson Hole, investors have been betting the ECB will take further easing measures, but according to Reuters sources, it won't happen in September. “Sources tell Reuters new action next week unlikely but outcome depends on August inflation data”, said Jamie Coleman, analyst at FXBeat. “That data is due out on Friday and is expected to fall to 0.3% y/y in August from 0.4% in July”.

The EUR/USD reached a high of 1.3205 so far, and it remains to be seen whether the shared currency will be able to consolidate above the psychological level. At time of writing, the EUR/USD is trading at 1.3198, 0.24% above its opening price, having bounced from a lower low of 1.3152 during the Asian session.

EUR/USD technical levels

If the EUR/USD breaks decisively above 1.3200, next resistances are seen 1.3238 (Aug 22 closing price) and the 1.3295/1.3300 area (Aug 22 high/psychological level). On teh other hand, supports could be found at 1.3152 (Aug 27 low), 1.3104 (Sep 6 2013 low) and 1.3100 (psychological level).

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
COMPANIES IN THIS ARTICLE
Trading Center