EUR/USD flirting with daily lows, below 1.1400 handle

   “¢   ECB President Mario Draghi’s dovish comments continue to weigh on the shared currency.
   “¢   A modest pickup in the USD demand further collaborates to the pair’s ongoing downfall.

The EUR/USD pair reversed an early European session uptick to an intraday high level of 1.1425 and is currently placed at the lower end of its daily trading range.  

The shared currency remained on the defensive and continues to be weighed down by the ECB President Mario Draghi’s overnight dovish comments, saying that recent economic developments have been weaker than expected and that further significant monetary stimulus was still needed amid uncertain global environment.  

The pair did get a minor lift during after some soothing comments by ECB governing council members Ewald Nowotny and Yves Mersch, though a modest pickup in the US Dollar demand prompting some fresh selling at higher levels and further collaborated to the pair’s weaker tone for the fourth session in the previous five.

The pair has now moved within striking distance of 1-1/2 week lows, set in the previous session and a follow-through weakness, led by some fresh technical selling amid absent relevant market moving economic releases from the US, now looks a distinct possibility.

Technical outlook

Mario Blascak, FXStreet’s own European Chief Analyst explains: “Technically the EUR/USD broke from the consolidation triangle on the downside while it is still moving within a sideways trend. The slide lower in the EUR/USD reflects risk-off sentiment ruling the market amid the slowdown of the global economy with safe haven currencies like the US Dollar benefitting. The broader sideways trend is prevailing with the short-term breakout from the triangle structure indicating further US Dollar strength.”