EUR/USD looks to rebound from 1.1860

After bottoming out in the 1.1860 area, EUR/USD is now looking to pick up some pace following the speech by ECB’s M.Draghi, currently testing the 1.1880 region.

EUR/USD decline halted around 1.1860

Spot is attempting to regain some traction after President M.Draghi said the current pace of economic recovery in the region still needs to translate into inflation on a more sustainable basis.

Draghi also noted that volatility in the exchange rate is a source of volatility, while the recalibration of stimulus will maintain accommodation.

In the meantime, the pair is testing fresh 3-day lows and trading below the critical 5-month support line for the first time. It is worth recalling that the pair has been keeping the bullish prospect while above this multi-month support line.

On the USD-side, FOMC’s W.Dudley argued the Fed will keep removing the policy accommodation on a gradual fashion.

EUR/USD levels to watch

At the moment, the pair is losing 0.65% at 1.1880 and a breakdown of 1.1862 (low Sep.20) would target 1.1837 (low Sep.14) en route to 1.1793 (55-day sma). On the upside, the initial hurdle emerges at 1.2006 (high Sep.22) followed by 1.2033 (high Sep.20) and finally 1.2069 (high Aug.29).