EUR/USD struggles to move past 1.1830 supply zone, Yellen and Draghi awaited

The EUR/USD pair once again failed to surpass the 1.1820-30 heavy supply zone and retreated around 25-30 pips from session tops. 

The pair has now retreated back to the 1.1800 handle and was being dragged by a modest US Dollar recovery, led by slightly better-than-expected core durable goods orders data from the US. In fact, excluding transportation items, items for long lasting goods climbed 0.5% m-o-m during July, better than 0.4% expected and previous month's 0.1%. 

Meanwhile, the headline number showed durable goods orders sunk 6.8% in July, marking its biggest decline since August 2014. This coupled with a mildly bearish greenback tilt helped limit further losses for the pair. 

The market seems to have largely ignored hawkish comments from a couple of FOMC members - Cleveland Fed President Loretta Mester and Dallas Fed President Robert Kaplan, as traders also seemed reluctant to place aggressive bets ahead of the keenly awaited speeches by the Fed Chair Janet Yellen and the ECB President Mario Draghi at the very important Jackson Hole Symposium.

Jackson Hole: Yellen and Draghi awaited by markets - Rabobank

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes, "the pair keeps hovering around 1.1800, with a short-term neutral stance according to the 4 hours chart, as the price is barely above its 20 and 100 SMAs, both flat and within a tight range, whilst technical indicators head nowhere around their mid-lines. The weekly low at 1.1730 is the immediate support ahead of a stronger static area at 1.1680/90- Below this last, the decline can gain momentum and extend down to 1.1630. To the upside, 1.1830 is the immediate resistance, followed by 1.1860, with only a break above this last favoring a bullish continuation for later on the day."