EUR/USD retreats from highs, near 1.0650 ahead of Draghi

EUR/USD is fading the initial spike to the 1.0680 area, or multi-day tops, and is now returning to the mid-1.0600s.

EUR/USD attention to Draghi

Spot has started the week on the right footing so far, backed by a generalized offered bias around the greenback. However, the bullish attempt seems to have run out of steam just beyond 1.0680, sparking the ongoing correction to the 1.0650/45 band.

USD remains under pressure following last week’s 13-year tops above the 102.00 handle when tracked by the US Dollar Index (DXY), although reflation prospects in the US and the constructive stance around US yields should remain supportive of the buck.

Later in the session, President Mario Draghi is expected to speak twice before the European Parliament on the economic outlook of the region and potential implications following the Brexit vote.

Still with the ECB, board members J.Dickson, P.Praet and B.Coeure are also due to speak.

An empty calendar in the US today could prompt a quiet session in Wall St., although recent highs in US equity indices should put that to the test.

EUR/USD levels to watch

The pair is now up 0.63% at 1.0654 facing the initial resistance at 1.0685 (high Nov.28) followed by 1.0763 (high Nov.16) and finally 1.0826 (high Nov.14). On the flip side, a breakdown of 1.0515 (2016 low Nov.24) would open the door for 1.0457 (2015 low Mar.16) and then 1.0332 (monthly low January 2003).