EUR/USD rallied 167 pips since yesterday and broke out clocking 1.2459, with 3-year fresh-highs in Thursday's Asian trading session, and then retreated after receiving mixed data upon the EU's session opening to a 1.2384 low. As for US dollar, the DXY plunged to 88.61 low, a level hasn't seen since 2014 and was sold aggressively pushing EUR bulls higher.
The main event for today is the ECB bid rate, shortly followed by Draghi press conference and expectations of strict and decisive words in case the governor has the intention of cooling down the EUR. A dovish scenario is least expected and a neutral stance is lesser in the case that the market is misled. That leaves us to the dovish tone as all leads read. Despite Draghi's tone, the market should be open to all scenarios after what happened on Tuesday with BoJ statement and the yen's strengthening.
EUR/USD Technical Overview:
Closing price: 1.2398
Target price: 1.2550-55
Resistance levels: 1.2430 , 1.2550+/-
Support levels: 1.2340-50 (5-EMA), 1.2300+/, 1.2263**
Trend: Up
Trend reversal price: 1.2263**
Comment: The market is bullish with yesterday's surge higher signaling a bull upturn from flagging congestion and opens up potential to 1.2550. Trade is poised for continuation rallies. Any corrections should only last 1-2 days at this stage of the drive and stay within yesterday's range to maintain upside forces. A close under 1.2263** signals a short term turnover.