The European currency is under pressure following the Q&A session by President Draghi, with EUR/USD so far managing to keep the trade above the key support at 1.1200 the figure.
EUR/USD offered on dovish ECB
The selling pressure stays unchanged around the pair on Thursday, retreating for the second session in a row although finding decent support in the 1.1200 neighbourhood.
Spot showed bouts of volatility following the ECB meeting and the press conference by President Mario Draghi. Recall that the ECB left its benchmark rates unchanged today and it revised lower its projections for inflation in the region for the upcoming years.
The central bank’s tone was not as hawkish as initially expected by investors. Despite it did remove the ‘at lower’ reference when talking about interest rates, it kept unchanged the bond-buying programme and it even remains ready to modify it in case the outlook on the region deteriorates.
EUR/USD levels to watch
At the moment, the pair is losing 0.30% at 1.1222 facing the next support at 1.1196 (low Jun.8) followed by 1.1181 (20-day sma) and finally 1.1108 (low May 30). On the upside, a breakout of 1.1284 (2017 high Jun.5) would target 1.1300 (high Nov.9 2016) en route to 1.1367 (high Aug.18 2016).