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Forex: EUR/USD consolidates below 1.3400

The bloc currency has now stabilized below the key resistance at 1.3400 in the last part of the NA session on Thursday. The demand for the euro remains depressed, as the negative effects of Draghi’s comments still hover over traders.

Moving forward to Friday’s docket, risk appetite trends would be put to the test after the Chinese trade balance and inflation figures, ahead of the German trade balance and Italian industrial production. Across the pond, the most relevant release would be the US external sector figures followed by Wholesale Inventories.

As of writing, the cross is down 0.93% at 1.3396
Next support levels align at 1.3355 (Kijun Line) ahead of 1.3349 (low Jan.25) and 1.3265 (low Jan.23).
On the upside, a break above 1.3494 (low Feb.6) would aim for 1.3523 (MA10d) and finally 1.3577 (high Feb.7).

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