EUR/USD recovers from a 3-day slide after ECB, before NFP

EUR/USD is about to end the day with a gain of 50 pips after falling during the previous three trading days. The euro gained support after Draghi’s press conference that followed the decision of the European Central Bank to leave interests rates and the massive purchase program unchanged.

Draghi sounded more optimist about the economic future and mentioned that they don’t see a sustainable uptrend in the core inflation. The apparently “not so dovish” speech, boosted the euro and the Swiss franc. 

Also, a retreat of the US dollar, ahead of Friday’s NFP, offered another support to the bullish bias in the EUR/USD. The pair peaked after Draghi’s press conference at 1.0615. It failed to hold above 1.0600 and pulled back to the 1.0580 area. 

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Technical outlook 

“The EUR/USD pair continues lacking a clear directional strength and with the risk still lean towards the downside, as the pair is unable to advance beyond 1.0600”, said Valeria Bednarik, Chief Analyst at FXStreet. 

According to her, in the 4-hour charts, the Momentum indicator has recovered ground, now heading higher in neutral territory, but the RSI indicator has turned horizontal around 55, indicating the absence of upward strength. “Upcoming moves will be determinate by the NFP outcome with 1.0520, and 1.0635 being the breakout levels to take care of, to see some follow-through.”