EUR/USD fades a bullish spike to 1.1060, turns negative

After a knee-jerk bullish reaction to 1.1060 on Draghi's initial comment, the EUR/USD pair is seen fading its spike and dipped into negative territory. The pair is currently trading near session low around 1.1005 region. 

Ahead of the press conference, ECB's governing council decided to keep its main rate and deposit rate unchanged at 0.0% and -0.4% respectively. The central bank also left its marginal lending facility rates unchanged at 0.25% and held its monthly QE target at €80 billion, which will run at least until March 2017.

The ECB President Mario Draghi, however, reiterated the downward risks to the Euro-zone's economic outlook and the risk have been further fueled by last month's historic Brexit vote. However, the central bank sees no major impact on inflation outlook and showed its readiness to use all instruments, if required.

On the economic data front, US weekly jobless claims came-in at 253 k, which was better-than 26 k forecasted. Meanwhile, existing home sale for June rose to an annualized pace of 5.57 million vs consensus estimate of 5.48 million units. The only disappointment came from Philly Fed manufacturing index that dropped sharply to -2.9 in July from 4.7 recorded in the previous month. 

Technical levels to watch

On the immediate downside, 1.1000 psychological mark remains immediate support to watch for, below which the pair seems to immediately head towards 1.0960-50 important support. On the flip side, momentum back above 1.1040 now seems to assist the pair towards the very important 200-day SMA resistance near 1.1090-1.1100 region.