EUR/USD regains 1.1100

By FXStreet FXStreet (Córdoba) – EUR/USD has managed to recover some of its sharp losses, incurred on the back of dovish comments from Draghi, and it trades back above 1.1100 as the dust settles and focus turns to Friday’s US nonfarm payrolls report.

EUR/USD lost more than 150 pips and bottomed out at 1.1086 before finding support and regaining the 1.11 mark. However, the bounce attempt has been capped by the 1.1135 zone. At time of writing, the pair is trading at 1.1130, down 0.85% on the day.

Euro slumps on dovish Draghi

The euro weakened across the board following more dovish than expected ECB President Draghi comments, which were understood as the bank leaving the door open to further QE. The ECB also downgraded growth and inflation forecasts and stated negative inflation readings are likely in the short-term.

EUR/USD technical levels

On the downside, next supports are seen at 1.1086/81 (Sep 3 low/50-day SMA) and 1.1017 (Aug 18 & 19 lows). On the upside, above 1.1135 immediate resistances could now be found at 1.1243 (Sep 3 high), 1.1285 (200-day SMA) and 1.1318 (Sep 2 high).
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Source:: FX Street