EUR/USD gives up most daily gains after Draghi's speech

EUR/USD turned lower and pulled back from daily highs following a testimony from ECB President Mario Draghi before the European Parliament.

Among remarks, Mario Draghi said Monday Eurozone recovery is proceeding at a moderate pace and has shown “remarkable resilience” to adverse developments. He said that inflation however, still relies on monetary support and they remain committed to preserving very substantial degree of accommodation.

EUR/USD had managed to trim losses after a 10-day losing streak, but it gave up most of its intraday losses and dropped back to the 1.06 area following dovish-ish comments from ECB President. At time of writing, EUR/USD is trading at 1.0600, still a few pips above its opening price.

EUR/USD technical levels

As for technical levels, short-term resistances could be found at 1.0648 (Nov 21 high), 1.0745 (Nov 17 high) and 1.0767 (10-day SMA).  On the other hand, next supports are seen at 1.0568 (Nov 18 low), 1.0550 (Dec 2 2015 low) and 1.0500 (Dec 3 2015 low/psychological level).

To learn more about this topic, check our video analysis:

eur usd from Tip TV Productions on Vimeo.