EUR/USD Current price: 1.1173
It was a dull Monday with holidays in most major markets keeping activity to the minimum across the FX board. China, the UK and the US, all remained closed at the beginning of the week. The only relevant event of the day was ECB's Draghi's testimony before the European Parliament, which added nothing new to what the market already knew. Draghi stressed the need for further monetary support, as despite the downside risks to the economic outlook have been diminishing, it's too early to retrieve it. The major issue, according to ECB's head is that underlying inflation has remained subdued as well as wage growth, insufficient to support a durable and self-sustaining convergence of inflation toward the medium-term objective.
The EUR/USD pair traded in the 1.1160/80 region all day long, with investors awaiting fresh clues, in the form of US and German preliminary May´s inflation, both scheduled to be released this Tuesday, alongside with EU latest confidence surveys. The technical picture in the short term favors a downward extension, although it will remain corrective due to ongoing dollar's weakness, unless the pair returns to territory sub-1.1000. In the 4 hours chart, technical readings present a neutral-to-bearish stance, with the price contained below a horizontal 20 SMA, and technical indicators heading marginally lower within negative territory.
Support levels: 1.1160 1.1120 1.1080
Resistance levels: 1.1220 1.1260 1.1300
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