EUR/USD keeps correcting lower to 1.0630, Draghi eyed

The European currency remains in corrective mode so far on Monday, now taking EUR/USD to the 1.0630 area after climbing to the vicinity of 1.0690 in early trade.

EUR/USD focus on Draghi

Spot lost upside momentum following overnight tops in the proximity of 1.0690 at the beginning of the week, as the greenback has managed to trim early losses, in turn pushing the US Dollar Index back above the critical 101.00 barrier.

In spite of the ongoing correction lower, the pair keeps the trade above the 1.0600 handle, looking to put further distance from last week’s fresh YTD tops near 1.0510.

Ahead in the day, ECB’s Mario Draghi is expected to speak twice before the European Parliament on the economic outlook of the region and the potential consequences following the Brexit vote.

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

Previously, EMU’s M3 Money Supply has expanded 4.4% on a year to October, while Private Loans rose 1.8% during the same period.

EUR/USD levels to watch

The pair is now up 0.44% at 1.0634 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).

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