EUR/USD pierces 1.1200 on Draghi, looks to data

• EUR/USD eases to 1.1200 on dovish Draghi.
• ECB’s Draghi said rate cuts remains a tool.
• German, EMU ZEW survey coming up next.

The selling pressure is now building up around the shared currency and is dragging EUR/USD to fresh daily lows in the 1.1200 neighbourhood.

EUR/USD offered after Draghi mentioned rate cuts

Spot has come under quick and strong selling pressure after President Draghi said at the ECB Forum in Sintra that interest rate cuts remain in the bank’s toolbox.

The central-banker also emphasized the flexibility of the ECB to use all measures in order to push inflation to the bank’s target, adding that the APP still has considerable room. Draghi also reiterated that risks to the outlook remains tilted to the downside.

Later in the day, the German/EMU ZEW survey will give markets and idea of the investors’ sentiment in the region, while final May inflation figures in Euroland are unlikely to be a market-mover today.

EUR/USD levels to watch

At the moment, the pair is retreating 0.16% at 1.1200 facing immediate contention at 1.1194 (low Jun.18) seconded by 1.1176 (monthly low Mar.7) and finally 1.1115 (low May 30). On the upside, a breakout of 1.1347 (high Jun.7) would target 1.1356 (200-day SMA) en route to 1.1448 (monthly high Mar.20).