Breaking: EUR/USD tumbles as Draghi opens the door to rate cuts

Yohay Elam FXStreet

European Central Bank President Mario Draghi has said that cutting interest rates is part of the bank's toolkit, completing a dovish reversal by the Frankfurt-based institution.

He adds that additional stimulus may be needed if the situation does not improve. Mitigating measures are part of the tools in order to fight any side effects. Draghi said that APP (which is the ECB's bond-buying scheme) still has considerable headroom.

EUR/USD has dropped from around 1.1230 to nearly 1.1200. Support awaits at 1.1140 and at 1.1107. Resistance is at 1.1250.

EUR USD technical analysis June 18 2019 Draghi

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Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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