EUR/USD volatile below 1.1600 on Draghi

The pair trades in sub-1.1600 levels on Draghi’s speech in Sintra.
Draghi says that ‘significant’ monetary accommodation still needed.
The greenback climbs to session highs around the 95.00 handle.

Pablo Piovano FXStreet

The selling pressure around the shared currency is now picking up pace and driving EUR/USD back to the 1.1580/70 band, where it is attempting to consolidate.

EUR/USD weaker on USD-buying, Draghi

Spot gathered extra downside traction today following a moderate rebound in the demand for the greenback, all amidst a persistent risk-off atmosphere in response to the recent escalation in the US-China trade spat.

In addition, EUR remains under pressure after President Draghi said in Sintra (Portugal) that there is still the need of ‘significant’ monetary accommodation in the region, adding that the central bank will be patient in determining the timing of the first rate hike.

Furthermore, President Draghi said the uncertainty around the growth outlook in the region has recently increased.

EUR/USD levels to watch

At the moment, the pair is losing 0.40% at 1.1576 and a breakdown of 1.1543 (low Jun.15) would target 1.1508 (2018 low May 29) en route to 1.1479 (low Jul.20 2017). On the flip side, the next hurdle aligns at 1.1644 (high Jun.19) seconded by 1.1692 (21-day sma) and finally 1.1709 (10-day sma).

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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