EUR/USD: no long-lasting effect from Draghi's jawboning

FXStreet (Moscow) - EUR/USD has settled at 1.3849, slightly above current intraday lows at 1.3842

Enough is enough

EUR/USD was a star last week as it managed to gain about 190 pips despite weak inflation data and ECB promises to ease policy and use unconventional tools. But, those glorious days are gone as the pair gapped lower at the opening on Monday due to heavy verbal interventions from Draghi during weekend. The Head of the Eurozone central bank said Saturday that further strengthening of the euro would require further monetary
policy stimulus. Markets took his words seriously and pushed the single currency to 1.3842 against Friday close at 1.3884. This is a good reason for correction after a strong bullish run, while final March CPI data published this week may put some more fuel to the fire if it confirms risks of heightened deflationary pressures in the currency union. From the technical point of view keep an eye on 1.3815/00 area, where fresh demand is clustered. The resistance is seen at current Asian high of 1.3861.

What are today’s key EUR/USD levels?

Today's central pivot point can be found at 1.3885, with support below at 1.3833, 1.3842 and 1.3820, with resistance above at 1.3906, 1.3928, and 1.3949. Hourly Moving Averages are mostly bearish, with the 200SMA at 1.3789 and the daily 20EMA neutral at 1.3803. Hourly RSI is bearish at 34.