EUR/USD unfazed near 1.1770 on Draghi

   •  Draghi says economic expansion remains solid and broad-based.
   •  Underlying inflationary pressure still subdued. 

The EUR/USD pair stalled its mid-European session retracement from levels beyond the 1.1800 handle and is now looking to stabilize around the 1.1770-75 region.

The pair found some support after the ECB President Mario Draghi, during his testimony before the European Parliament Economic and Monetary Affairs Committee, reiterated that economic expansion remains solid and broad-based. 

The initial positive remarks, however, were largely negated by his comments that inflation dynamics are yet to show convincing signs of a self-sustained trend as the underlying inflationary pressures are still subdued. Draghi reassured that ECB measures will preserve the current financing conditions and ensure ample degree of necessary monetary stimulus.

In absence of any fresh hawkish signals, Draghi's comments did little to provide any fresh bullish impetus to the major, with the pair now struggling to regain traction and holding with nominal daily losses. 

Meanwhile, the market had a muted reaction to the German President Frank-Walter Steinmeier's statement the parties should reconsider willingness to form a government to avoid a fresh election.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: "Technically, the 4 hours chart shows that the post-London's opening momentum eased, as the pair was unable to settle above 1.1790, the 23.6% retracement of its latest rally, now struggling around a bearish 20 SMA, and with technical indicators flat around their mid-lines, indicating a limited downward scope. As commented on a previous update, the pair would need to advance beyond the 1.1820/30 price zone to gain upward traction, while the main support now is 1.1745, en route to the 1.1700 figure."