EUR/USD slips below 1.0600 handle ahead of Draghi

The EUR/USD pair ran through fresh offers at higher level and failed to build on early momentum to 7-day peak level of 1.0685, touched during early Asian session.

Currently hovering around 1.0600 handle, the pair reversed all of its daily gains and remained closer to last week's 11-month low amid prevalent uncertainty over the Italian constitutional referendum next Sunday.

Earlier on Monday, spot gained some traction and extended Friday's recovery trend as traders continued to cash-in some profits from a post-US election US Dollar up-surge to the highest level since March 2003.

Next in focus would be ECB President Mario Draghi's testimony about the European Central Bank's perspective on economic and monetary developments and the consequences of the Brexit before the European Parliament's Economic Committee. Ahead of the ECB's next monetary policy meeting on December 8, Draghi's comments would influence sentiment surrounding the shared currency and eventually provide fresh impetus for the major.

Technical levels to watch

A follow through selling pressure below 1.0580 horizontal support might now turn the pair vulnerable to immediately slide below 1.0550 handle towards retesting recent lows support near 1.0520 area. On the upside, 1.0625-30 area now becomes immediate resistance above which the pair seems to make a fresh attempt towards reclaiming 1.0700 handle.

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