Forex: EUR/USD trading near session highs at 1.3085/86

The EUR/USD has continued to trade in positive territory, albeit slightly off its highs of 1.3094. At the time of writing, the pair has secured an advance of +0.19% thus far during European trading, operating in the region of 1.3085/86.

According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., “The hourly structure is negatively aligned, as 55-day EMA limits the upside and price holds below 1.3120/40 (Friday’s low). A break here would allow for further correction, however a prevailing negative tone on 4h chart keeps the downside favored.”

Later today, several events or indicators are slated for release across the EMU, including figures regarding the M3 Money Supply (9:00 GMT), Consumer and Business Confidence (10:00 GMT), and ECB President Draghi’s Speech at 17:30 GMT.

Slobodan Drvenica points to the resistances at 1.3109, then 1.3121 and finally the 1.3144 level. Conversely, a prolonged movement below the 1.3130 handle will rekindle supportive means at the 1.3017 onto 1.3000 (January 4 low and psychological level).