EUR/USD recovers from lows, back to 1.1000 area

EUR/USD changed course and fell sharply from the mid 1.10 area to a low of 1.0978 at the beginning of the New York session, with the move blamed mostly to technical factors than to the ECB or US data.

The ECB decided to leave its monetary policy unchanged at today’s meeting and Draghi said Euro area markets responded with  “encouraging resilience” to the UK vote to leave the EU and the Governing Council wants more information before introducing new measures, in case of need.

The euro moved higher as knee-jerk reaction to Draghi’s speech and peaked at 1.1059 before turning south and erasing intraday gains, despite mixed US data. EUR/USD hit a low of 1.0979 before finding support. At time of writing, the pair is trading at 1.1005, just a few pips below its opening price.

EUR/USD levels to watch

In terms of technical levels, EUR/USD could find next supports at 1.0970 (Jun 27 low), 1.0911 (post-Brexit low, Jun 24) and 1.0821 (Mar 10 low). On the flip side, resistances line up at  1.1085 (200-day SMA), 1.1164 (Jul 14 high) and then 1.1185 (Jul 5 high).