EUR/USD stays depressed near lows, ECB’s Q&A is underway

• Draghi said reinvestment will be ‘sizeable’.
• President Draghi noted today’s decision on QE was not unanimous.
• The ECB will disclose a pattern of reinvestment later in the afternoon.

After bottoming out in the 1.1740 region, EUR/USD managed to regain some attention and is now re-testing the 1.1760/70 band.

EUR/USD found dip-buyers around 1.1740

The pair stays within the negative territory so far today, as the ECB’s Q&A session seems to leave no room for surprises at today’s meeting.

President Draghi said today’s Council decision on QE was not unanimous, while a large majority preferred to leave it ‘open ended’. He added that QE ‘will not stop suddenly’.

Further out, Draghi reiterated that the central bank is still far from the inflation target. Asked about the crisis in Catalonia, Draghi suggested that it is still premature to gauge the risks on financial stability (if any at all).

In addition, President Draghi said that the recovery in the US economy justifies the current stance in monetary policy.

EUR/USD levels to watch

At the moment, the pair is losing 0.44% at 1.1760 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.