EUR/USD bounce off 1.1160 important support, Draghi in focus

The EUR/USD pair bounced off session low and for the time being, managed to defend an important support near 1.1160 region.

Currently trading around 1.1185 region, spot has now jumped to daily tops amid a modest US Dollar retracement in wake of a subdued action around the US treasury bond yields.

The pair's latest leg of up-move could also be attributed to some short-covering from an important horizontal support as investors now looked forward to the ECB President Mario Draghi's testimony before the Economic and Monetary Affairs Committee, later during the day.

It, howevr, remains to be seen if the pair is able to build on to the up-move and reclaim the 1.1200 handle amid holiday thinned trading action and absent fundamental drivers, in-terms of major market moving economic releases. 

Draghi's comments on the central bank's monetary policy outlook could act as the only catalyst providing some fresh imeptus for the pair's trading action on Monday. 

   •  EUR/USD seen between 1.08/1.14 in 3-month – Danske Bank

Technical levels to watch

From current levels, 1.1190-1.1200 area is likely to act as immediate hurdle, above which a bout of short-covering could lift the pair towards 1.1235 horizontal resistance. Momentum above this resistance would reaffirm near-term range and boost the pair further towards retesting the top end of trading range hurdle near 1.1265 region.

On the downside, 1.1160 level remains immediate strong support to defend, which if broken would confirm a near-term bearish breakdown and accelerate the slide towards the 1.1100 handle en-route its next support near 1.1075-70 region.