EUR/USD challenging 1.1300 on dovish Draghi

The pair remains weak and drops further to 1.1320/15 band.
ECB left unchanged its key interest rates, matching consensus.
ECB will reinvest QE debt beyond the first rate raise.

Pablo Piovano FXStreet

EUR/USD is putting YTD lows near 1.1300 the figure to the test today following the press conference by President Draghi.

EUR/USD closer to 1.1300

The pair is accelerating the daily downside after ECB’s Draghi stressed recent data in the euro area have come in on the weaker side.

In addition, Draghi reiterated that a sustainable degree of accommodation in monetary policy is still needed in order to keep inflation on its way to the bank’s target.

Draghi also mentioned that risks to the economic outlook are now tilted to the downside.

EUR/USD levels to watch

At the moment, the pair is down 0.58% at 1.1316 facing the next support at 1.1306 (2019 low Jan.3) followed by 1.1269 (monthly low Dec.14 2018) and finally 1.1215 (2018 low Nov.12). On the flip side, a break above 1.1396 (10-day SMA) would target 1.1415 (21-day SMA) en route to 1.1442 (38.2% Fibo of the September-November drop).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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