The EUR/USD pair slid around 80-pips during Draghi’s press conference following the ECB’s interest rate decision but was able to find support at 1.0850. As of writing, the EUR/USD was trading at 1.0867, still down 0.34% on the day.
The pair’s price action was dominated by Mario Draghi’s, President of the ECB, statements during the firs half of the American session. The ECB decision nor the press conference provided no real surprises. However, the fact that Draghi highlighted that no discussion was held on the ECB’s monetary policy stance disappointed the euro bulls. After an initial spike to a fresh session high at 1.0930, the pair quickly dropped to 1.0850.
However, the bearish momentum couldn’t sustain as the greenback started to lose strength amid weak macro data from the United States and falling U.S. Treasury bond yields. There was no apparent reaction to the data when it was released since the investors were focused on Draghi’s presser but as the markets settled down, the US Dollar Index failed to extend its upsurge above 99. Having set a session high at 99.21, the index is now at 99.05, up 0.21% on the day.
Technical levels to consider
A break below 1.0850 (daily/yesterday’s low) could allow the pair to extend its drop towards 1.0785 (200-DMA) and 1.0740 (Mar. 29 low). To the upside, resistances could be seen at 1.0950 (Apr. 27 high), 1.10 (psychological level) and 1.1065 (Nov. 8 high).