EUR/USD finds support near 1.1740 on Draghi’s speech

• Draghi highlights the economic momentum in the region
• Spot down to 1.1740, fresh daily lows.
• QE cut reflects confidence in CPI reaching target.

The downside pressure remains unabated around the European currency today, now relegating EUR/USD to test the lower bound of the range near 1.1740.

EUR/USD weaker on Draghi

Spot met further selling pressure despite President Draghi stressed the economic growth remains ‘solid and broad based’ in the region, adding that QE tapering reflects confidence that inflation is heading towards the central bank’s 2% goal.

Furthermore, Draghi noted that risks to growth stay broadly balanced, while core inflation figures are still to show convincing upward trend.

President Draghi reiterated once again the need for the implementations of fiscal structural reforms.

EUR/USD levels to watch

At the moment, the pair is losing 0.53% at 1.1749 facing the next support at 1.1725 (low Oct.23) seconded by 1.1686 (low Oct.6) and finally 1.1662 (low Aug.17). On the upside, a break above 1.1858 (high Oct.20) would target 1.1882 (high Oct.12) en route to 1.1911 (high Aug.2). In addition FXStreet’s technical confluence indicator (TCI) notes important resistance area around 1.1860/70, where coincide pivot points and Fibo retracement.