The Euro falls back towards the 1.1330 support level as Mario Draghi emphasized that current economic data is signaling weakness in the Eurozone and the global economy. Although he reiterated the ECB’s commitment to end the quantitative easing program this December, he made it clear that the ECB will be patient in regards to hiking interest rates amid the growing uncertainty around the growth prospects of the Eurozone. For today, investors need to monitor any developments related to the Italian budget plan and Brexit as these two topics remain as key drivers to the pair’s performance. Additionally, investors need to track the results of the US Consumer Confidence report as they will affect the pair from the US Dollar’s side.
The Euro breaks below the 1.1315 support paving the way for a drop towards the next significant support level at 1.1260. The directional bias of the pair is clearly bearish as prices trend below all the three major moving averages. Adding to the bearish bias, prices rejected the break above the 13-period moving average twice during the past 24 hours.
Support: 1.1315 / 1.1260
Resistance: 1.1431 / 1.1468