FXstreet.com (Barcelona) - The single currency reverted initial gains and dipped to critical support levels around 1.3480 on Thursday, after a dovish press conference by ECB’s Presiden M.Draghi is weighting on the cross.

Draghi also expects the inflation to dip below the 2% in the mediun term, keeping expectations around that level as well. He informed that weakness in the euro area would persist in the first part of the current year, allowing a recovery later. In the same tone, he warned that a high exchange rate would pose risks to inflation.

At the moment the cross is down 0.24% at 1.3488 with next support at 1.3459 (low Feb.5) and then 1.3425 (MA21d).
On the flip side, resistance levels are located at 1.3598 (high Feb.5) and then 1.3659 (Upper Bollinger).