EUR/USD in a tight range around 1.18, focus on Draghi

The single currency is following the generalized lack of direction in the global markets, prompting EUR/USD to meander within a narrow range around the key 1.1800 handle.

EUR/USD attention to Jackson Hole

Spot remains sidelined so far amidst rising anxiousness among investors over the speech by President Mario Draghi (and Chief Yellen) at the Jackson Hole Symposium later in the day.

In view of strategists at TD Securities, “Anyone looking for Draghi to make an announcement on tapering at Jackson Hole this week is likely to be let down. Rather than looking for any clear direction from rates markets, we think that we’re more likely to see any disappointment reflected in EURUSD lower”.

On the USD-side, market participants will closely follow the speech by Chair J.Yellen, looking for any hint of the probable future steps by the Federal Reserve regarding the rate path and/or the balance sheet reduction.

In the data space, German IFO survey is due later, while July’s durable goods orders are expected across the pond.

EUR/USD levels to watch

At the moment, the pair is retreating 0.02% at 1.1798 and a breach of 1.1661 (low Aug.17) would target 1.1657 (5-month up trend) en route to 1.1611 (low Jul.26). On the other hand, the initial hurdle aligns at 1.1830 (high Aug.21) followed by 1.1846 (high Aug.11) and finally 1.1894 (high Aug.3).