The EUR came under renewed selling pressure at the end of this Tuesday, following a speech from ECB's head, Mario Draghi. In his comments at the opening of the European Cultural Days 2015 event, in Frankfurt, he reiterated that the degree of monetary policy accommodation needs to be re-examined next December, pretty much repeating the statement of the latest meeting when it comes to monetary policy.
The common currency remained under pressure afterwards, and on the selling side during the Asian session, despite local share markets edged higher. In the European morning, the release of the Services PMIs for the region resulted in a negative surprise, as German and the EU final readings missed expectations in October, although remained in the growth side. Later today, the US will release its latest ADP survey, with market's forecast at 180K against previous 200K.
View the Live chart of the EUR/USD
In the meantime, the EUR/USD pair fell down to 1.0915 before bouncing some, but overall maintains its bearish potential, given that in the 4 hours chart, the price is extending below its 20 SMA, which is finally gaining some bearish slope, while the technical indicators head sharply lower below their mid-lines. The pair has an immediate support at 1.0896, last week low, and a price acceleration through the level, should lead to a slide down to 1.0840 a major static support level.
Sellers are capping the upside around 1.0960 now, so it will take a break above it to confirm additional short term advances up to 1.1000/20, where selling interest will likely surge again.
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