EUR/USD accelerates the downside, testing 1.0570

Sellers around the single currency have quickly stepped in today, now dragging EUR/USD to fresh lows in the 1.0570 area.

EUR/USD lower on Draghi, USD pick up

The pair met a wave of selling pressure following a strong rebound of the greenback, which manage to leave the area of daily lows when tracked by the US Dollar Index (DXY) to test session tops around 101.60.

EUR also reacted adversely to Draghi’s neutral tone at his testimony before the European Parliament on the economic outlook of the region and potential consequences following the Brexit vote.

Draghi reiterated the bloc’s economy keeps growing at a moderate albeit steady pace, while it showed resilience in the wake of the decision by the UK to abandon the EU. He also stressed that the measures implemented by the ECB have collaborated with the region’s recovery, although he suggested that fiscal and structural policies are needed to further spur GDP.

EUR/USD levels to watch

The pair is now losing 0.09% at 1.0577 and a breakdown of 1.0515 (2016 low Nov.24) would open the door for 1.0457 (2015 low Mar.16) and then 1.0332 (monthly low January 2003). On the upside, the next resistance lines up at 1.0685 (high Nov.28) followed by 1.0763 (high Nov.16) and finally 1.0826 (high Nov.14).

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