Forex: EUR/USD digests ECB's Draghi

The EUR/USD is trading quite flat around the weekly opening price of 1.3350, although trading in a very tight range on Monday. A fall as been seen around 14:30 GMT as ECB President Mario Draghi gave a speech before the European Parliament. He said the central bank's stance is accomodative and that the exchange rate, while not a policy target, it is important for growth and price stability. Eurozone weakness is expected to continue throughout 2013.

The EUR/USD found its session low at 1.3333 and bounced back to its opening price. Volume is low and the economic calendar is empty. The US is out on holidays.

"n the 4 hours chart, technical readings remain in negative territory, while 20 SMA offers dynamic resistance around 1.3378 also daily high: unless a clear candle opening above this last, the upside continues seen limited, while short term buyers are still defending the 1.3300/10 area", wrote FXstreet.com independent analyst Valeria Bednarik.