EUR/USD bid on Draghi, back around 1.1200

The buying interest seems to have returned around the single currency on Wednesday, now pushing EUR/USD back to the 1.1200 region.

EUR/USD picks up pace on Draghi’s comments

The pair met some fresh buyers after President Draghi said that QE may have more side effects than negative rates, adding there is no need to deviate from policy guidance.

Draghi also stressed the region is recovering at a solid pace although underlying inflation expectations remain subdued.

In the meantime, spot continues to regain part of the ground lost on yesterday’s pullback from fresh YTD peaks near 1.1270.

In the US data space, New Home Sales are up next ahead of the more relevant FOMC minutes. It is worth noting that market consensus expects the Committee’s statement to lean towards the hawkish side, while extra attention should be on whether members discussed the timing of the reduction of the Fed’s balance sheet.

EUR/USD levels to watch

At the moment, the pair is advancing 0.12% at 1.1196 facing the next resistance at 1.1267 (2017 high May 23) followed by 1.1300 (high Nov.9 2016) and finally 1.1367 (high Aug.18 2016). On the downside, a break below 1.1160 (low May 22) would target 1.1073 (76.4% Fibo of 1.1300-1.0339) en route to 1.1003 (20-day sma).