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  • The pair left the area of daily highs above 1.17 the figure.
  • The greenback rebounds and retakes the 94.60 area.
  • ECB’s President M.Draghi is due to speak later in the session.

After advancing to daily highs near 1.1720, EUR/USD lost some upside momentum and is now testing the 1.1675/70 band following a pick up in the demand for the buck.

EUR/USD looks to USD, Draghi

Spot trimmed part of the earlier gains and returned to sub-1.1700 levels in response to a bout of buying interest around the greenback, which has motivated the US Dollar Index to bounce off lows and regains the 94.60 vicinity.

Negative headlines involving UK’s PM Theresa May, EU’s M.Barnier and the Irish Border issue appears to have dented the positive mood in the risk-associated complex, giving extra wings to the buck and this provoking the current knee jerk in spot.

Moving forwards, President M.Draghi is due to speak at an event in Berlin, although he does not appear likely to touch monetary policy. In the US calendar, the housing sector will be under scrutiny ahead of the DoE’s weekly report on crude oil inventories.

EUR/USD levels to watch

At the moment, the pair is up 0.14% at 1.1681 and a breakout of 1.1724 (high Sep.14) would open the door to 1.1745 (high Jul.31) and finally 1.1792 (high Jul.9). On the other hand, the next support lines up at 1.1634 (21-day SMA) followed by 1.1526 (low Sep.10) and then 1.1508 (low May 29).