EUR/USD tumbles below 1.1300 on Draghi

The European currency is now rapidly losing its shine, dragging EUR/USD to test fresh lows in the 1.1290 area.

EUR/USD in 2-day lows

The pair has slipped to fresh lows in the 1.1270 area after ECB’s M.Draghi hinted at the likeliness of further stimulus in case of need.

Draghi argued the pace of the economic recovery in the region remains moderate, although he noted that inflation dynamics remain subdued.

Spot has given away initial gains and has returned to the negative territory ahead of Chief Yellen’s testimony before the Senate Banking Panel.

EUR/USD levels to watch

The pair is now losing 0.27% at 1.1284 with the next support at 1.1239 (100-day sma) followed by 1.1129 (low Jun.16) and finally 1.1101 (200-day sma). On the upside, a break above 1.1417 (high Jun.8) would target 1.1466 (high Apr.12) en route to 1.1617 (2016 high May 3).