EUR/USD testing fresh lows near 1.2370 on Draghi

  • EUR comes under pressure following comments by ECB’s Draghi.
  • Draghi noted inflation performance remains unconvincing.
  • The pair retreated further to session lows from above 1.2400.

EUR/USD came under renewed selling pressure today following President Draghi’s speech, dropping to fresh daily lows in the 1.2375/70 band.

EUR/USD weaker on Draghi

Spot quickly abandoned the area of daily peaks above 1.2400 the figure after ECB’s Mario Draghi said the central bank needs further evidence that inflation is approaching the bank’s target.

In the same line, Draghi reiterated that underlying inflation remains subdued although he expects it to converge to the 2% goal over the medium term.

EUR/USD levels to watch

At the moment, the pair is retreating 0.18% at 1.2369 facing the next support at 1.2273 (low Mar.9) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18). On the other hand, a break above 1.2446 (high Mar.8) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.18).

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