- The pair remains on the defensive and tests lows in sub-1.1700 area.
- Draghi sees no need to modify the forward guidance.
- ECB noted uncertainty around inflation is diminidhing.
EUR/USD is now losing the grip and manages to pierce the key 1.1700 milestone as Draghi’s press conference/Q&A session is under way.
EUR/USD looks to Draghi
The pair remains on the defensive on Thursday following the ECB monetary policy meeting and press conference by President Mario Draghi.
EUR stays weak after Draghi said there is no need to modify the current forward guidance. In addition, Draghi remained hopeful that inflation could converge to the central bank’s target, while he noted that uncertainty surrounding the inflation outlook now appears alleviated.
As usual, Draghi pledged for a major commitment in the implementation of structural reforms.
Regarding the ongoing trade war(ish), Draghi suggested that such a scenario would create an entirely different climate.
EUR/USD levels to watch
At the moment, the pair is down 0.27% at 1.1696 facing immediate support at 1.1684 (21-day sma) seconded by 1.1575 (low Jul.19) and then 1.1527 (low Jun.28). On the upside, a breakout of 1.1749 (high Jul.23) would open the door to 1.1792 (high Jul.9) and finally 1.1853 (high Jun.14).
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