EUR/USD fails to resist above 1.0600 on ECB’s Draghi

The EUR/USD pair met fresh supply once again near 1.0615 region and drifted back below 1.06 handle, following latest comments from ECB president Draghi.

EUR/USD: Vulnerable below 1.0580                                                                

Currently, EUR/USD now drops -0.29% to 1.0594, now eyeing for a test of Dec 2015 at 1.0538. The main currency pair failed in its recovery attempts above 1.06 handle as ECB President Draghi’s ready to do more stance weighs on the sentiment around the euro.

Draghi noted in his scheduled speech that the central bank is prepared to use all instruments available within mandate to secure sustained convergence towards inflation target, while adding that ECB is committed to maintain a very substantial degree of monetary accommodation.

The EUR/USD pair remains under pressure so far this session, largely in response to Yellen’s testimony-led resurgent demand for the greenback across the board, with the USD index now hovering near fresh yearly highs of 101.44.

With the ECB Draghi’s speech behind, all eyes now remain focused on the upcoming Fed speaks due later in the NA session, in absence of economic data releases.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0629 (daily high). A break beyond the last, doors will open for a test of 1.0675 (5-DMA) and from there to 1.0700 (round figure). On the flip side, the immediate support is placed at 1.0582 (multi-month lows) below which 1.0556 (Nov 2015 low) and 1.0538 (Dec 2015 low) could be tested.

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