EUR/USD facing resistance at 1.2370 ahead of ECB’s Draghi on Wednesday

• ECB’s President Draghi speech is scheduled at 11:00 GMT on Wednesday.
• US Consumer Price Index and the FOMC Minutes’ reports are also scheduled on Wednesday.
• ECB’s comments made the EUR/USD jump up and down on Tuesday.

The EUR/USD is trading at around 1.2339 up 0.15% on Tuesday. The pair got lifted more than 50 pips in mid-London session as ECB’s Nowotny said that the “European Central Bank will stop buying assets at some point this year.” But as the London session was coming to an end another ECB spokesman said “Nowotny's views are his own and don't represent the view of the governing council,” and the EUR/USD fell more than 30 pips to 1.2324.The market has now recovered more than 50% of the last spike down generated by the news. 

Looking ahead on Wednesday, ECB’s President Draghi will be speaking at 11:00 GMT, investors will be listening carefully and volatility can be expected. In the US the Consumer Price Index and the FOMC Minutes’ reports are scheduled at 13:30 GMT and 18:00 GMT respectively. 

EUR/USD weekly chart

The bulls have broken above 1.2345, last week’s high and they will need to keep the momentum going if they want to reach higher prices towards the 1.24 and 1.25 figures.

EUR/USD daily chart 

The market is facing resistance at the 50-period simple moving average at 1.2336 and at 1.2327 which is the open of last week. Tuesday’s spike made a test with the March 27 low.  

EUR/USD 4-hour chart

The EUR/USD is trading above the 50, 100 and 200-period SMA on the 4-hour chart. The bears aggressively sold at the 1.2370 level which is a prior supply/demand level. Supports are seen at 1.2302 and 1.2260 swing lows. The key resistance for bulls to break is now the 1.2370 resistance tested earlier on Tuesday and the 1.2420 prior swing high.