EUR/USD collapses to 1.0630 on dovish Draghi

Dovish comments from President Mario Draghi are relegating EUR/USD to the area of daily lows near 1.0630 for the time being.

EUR/USD sold off on Draghi

The pair has quickly given away its daily gains and plummeted into the red territory following the dovish speech from ECB’s Mario Draghi, who once again remarked that the inflation outlook stays ‘conditional’ to a very substantial degree of monetary accommodation, while upward pressure on consumer prices stay subdued.

In addition, Draghi stressed that a reassessment of the ongoing monetary stance is not warranted at this stage.

Looking ahead, EUR should stay under further pressure in light of the publication of the ECB minutes of the March meeting and speeches by Board members P.Praet and V.Constancio.

In the US docket, the usual report on the labour market is only due along with the speech by San Francisco Fed J.Williams (2018 voter, hawkish).

EUR/USD levels to watch

At the moment the pair is losing 0.21% at 1.0642 and a breakdown of 1.0629 (low Apr.6) would target 1.0625 (100-day sma) and finally 1.0597 (low Mar.14). On the flip side, the immediate resistance is located at 1.0705 (high Mar.31) seconded by 1.0728 (20-day sma) and then 1.0772 (high Mar.30).