Fresh buyers now seem to be rushing to the single currency following Draghi’s speech at the ECB Forum, taking EUR/USD to fresh tops around 1.1240.
EUR/USD bid on upbeat Draghi
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Spot met fresh buying interest in response to the upbeat comments by President Mario Draghi at the ECB Forum on central banking in Portugal.
Draghi argued that reflationary forces are now present in the region, while economic growth is seen above trend and well distributed across the bloc. Draghi also suggested the central bank could change policy although the stance should remain the same.
Measured by the US Dollar Index (DXY), the greenback plummeted to the 96.70 region in response to Draghi’s speech, taking the downside to 2-week lows.
EUR/USD levels to watch
At the moment, the pair is gaining 0.54% at 1.1243 facing the next up barrier at 1.1296 (2017 high Jun.14) and then 1.1300 (high Nov.9). On the other hand, a breakdown of 1.1130 (low Jun.15) would target 1.1108 (low May 30) en route to 1.1073 (76.4% Fibo of 1.1300-1.0339).