EUR/USD volatile on Draghi, tests 1.1060

The volatility around the shared currency has now accelerated, taking EUR/USD to navigate the 1.1010/60 range.

EUR/USD vigilant on Draghi

Spot keeps the composure after President Draghi stressed that the current QE programme will run until March 2017 at least, while rates will remain in low levels ‘well beyond horizon’.

Draghi stated that recovery should continue at a moderate pace in the region, while past ECB measures remain supportive of domestic demand.

Once again, he reiterated that risks for the euro area growth remains tilted to the downside – including Brexit - and that growth in Q2 is expected at a slower pace than Q1. Regarding inflation, consumer prices are seen picking up further in the next year and 2018.

President Draghi said the ECB remains ready to act in case of need.

In a secondary role today, US Initial Claims have come in at 253K during last week, taking the 4-Week Average to 257.75K from 259K, whle the Philly fed Manufacturing index has disappointed markets for the current month, dropping to -2.9 from 4.7.

EUR/USD levels to watch

The pair is now gaining 0.25% at 1.1042 and a breakout of 1.1082 (200-day sma) would target 1.1166 (high Jul.14) en route to 1.1201 (55-day sma). On the other hand, the immediate support aligns at 1.0979 (low Jul.20) followed by 1.0913 (post-Brexit low Jun.24) and then 1.0820 (low Mar.10).