EUR/USD consolidates above 1.1050, ECB Draghi eyed

The single currency stalled its downslide towards the early European trades, taking EUR/USD off lows around the mid-point of 1.10 handle as markets remain wary ahead of ECB Draghi’s speech.

EUR/USD finds support just below 1.1040

Currently, EUR/USD now trades -0.18% lower at 1.1056, recovering from session lows of 1.1037 struck earlier today. The main currency pair paused its bearish run and now treads water around 1.1050 – psychological levels, as traders remain on the back foot and refrain from placing any directional bet on the euro ahead of ECB President Draghi’s speech due later in the upcoming hours.

ECB President Mario Draghi is scheduled to deliver opening remarks at the 8th ECB Statistics Conference, in Frankfurt later in the European session. Markets are expecting Draghi’s remarks to stir huge volatility across the FX board, as the central banker may hint at unveiling further stimulus measures in the upcoming months, in an effort to combat post-Brexit economic uncertainty.

Hence, the risk remains to the downside for the major as the European currency may bear the brunt of Draghi’s dovish comments expected during his speech. Meanwhile, persistent broad based US dollar strength amid risk-aversion is also likely to keep the EUR/USD pair under pressure, as we progress towards the FOMC minutes due to be published during the American afternoon.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1092/1.1100 (200-DMA/ round number). A break beyond the last, doors will open for a test of 1.1146/50 (daily R2/ psychological levels). On the flip side, the immediate support is placed at 1.1022 (Jun 30 low) below which 1.1006/00 (Jun 26 low/ round figure) could be tested.