EUR/USD Trims Gains on Draghi’s Dovish Words
EUR/USD pair backed-off from the daily high of 1.1454 after ECB’s annual report published today showed Draghi’s commitment to fight low inflation is stronger than ever.
Trades around 1.1410
The spot now trades around 1.1425 levels, which is slightly below 1.1432 (76.4% of 1.1714-1.0517). The level acted as a strong resistance for last four trading sessions. Offers around the same were taken out earlier today, following which the pair clocked a high of 1.1454.
The decline from the highs happened after Draghi, in the foreword to the ECB's annual report 2015, said the bank will surrender to excessively low inflation. Furthermore, ECB’s Constancio also added that the bank will do whatever necessary to pursue price stability.
EUR/USD Technical Levels
The immediate hurdle is noted at 1.1418 (23.6% of Mar 2015 low-Aug 2015 high) and 1.1432 (76.4% of 1.1714-1.0517), above which the pair could test 1.1460 (Sep 18 high). A break higher would expose 1.15 handle. On the other hand, a break below 1.14 would shift risk in favor of a drop to 1.1376 (Feb 11 low). Next major support is seen around 1.1342 (Mar 17 high).
(Market News Provided by FXstreet)