European Central Bank President Mario Draghi said on Wednesday that the time was not right to consider rescuing Spain. He didn’t mention that the ECB was poised to provide more support for banks or governments either.
The Euro hit a three week high versus the dollar on the news that Britain is back to recession, but has been moving sideways in the 1.32 area ever-since, ahead of the Federal Open Market Committee (FOMC) meeting.
Last Friday’s bullish close opens the door for additional gains over the coming days but ultimately, any rallies should be well capped below 1.3400. A break and daily close back under 1.3000 is now required to put pressure back on a bearish outlook.
By Kiana Danial at Forex Diva