The EURUSD pair was trading 0.25% higher on Monday morning and was hovering around 1.2320 during the London session.
Later in the day, the ECB president Mario Draghi is due to testify on monetary policy and the inflation outlook before the European Parliament Economic and Monetary Affairs Committee in Brussels. As this speech will be about macro economy, volatility might be higher during and after the event.
From the US dollar perspective, new home sales are projected to increase to 655,000 from 625,000 previously, but this should not influence the US dollar.
The pair returned to the strong support zone of previous highs and lows, which is around the 1.23 level and managed to defend it. As long as the euro trades above, the short-term outlook seems bullish. The next support is located around 1.2220.
Bears will be grouped around 1.2350 and if this resistance fails to hold, further upside toward 1.24 could be opened. In all cases we strongly recommend to have rigorous money and risk management.
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