- The pair fades the up move to the 1.1800 area.
- The greenback manages to gather some traction in lows near 93.70.
- ECB’s Mario Draghi said underlying economic fundamentals remain solid.
The upside momentum around the European currency is now running out of steam and dragging EUR/USD back to the 1.1770/65 band after approaching the 1.1800 zone.
EUR/USD gives away some gains near 1.1800
After briefly testing the 1.1800 neighbourhood earlier in the session, spot has now given away part of those gains and is trading back into the 1.1770/60 band on the back of some recovery around the buck.
Further out, at his speech before the European Parliament, President M.Draghi said the underlying economic fundamentals in the region remain solid, while risks remain broadly balanced. Draghi also noted that the asset purchase scheme is now part of the central bank’s toolkit.
Back to the trade front, German Chancellor A.Merkel suggested the country could act if there is no resolution between the US and the European Union, all ahead of President Trump’s tour in the Old Continent.
In the regional calendar, the Sentix Index – which measures Investor Confidence – came in above consensus for the current month.
EUR/USD levels to watch
At the moment, the pair is gaining 0.18% at 1.1766 facing the next hurdle at 1.1791 (high Jul.9) seconded by 1.1853 (high Jun.15) and finally 1.1854 (38.2% Fibo of April-May drop). On the other hand, a break below 1.1718 (monthly low Dec.12 2017) would open the door to 1.1662 (10-day sma) and then 1530 (low Jun.19).
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