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EUR/USD challenges 1.3000

FXStreet (Edinburgh) - The selling interest continues to take a toll in the EUR on Thursday, dragging the EUR/USD to briefly test levels bellows the 1.3000 mark for the first time since July 2013.

EUR/USD weaker on Draghi

Mario Draghi’s press conference is not helping the euro so far, keeping the trade in 12-m lows around 1.3010/1.2995. To the already mentioned lower repo rate (0.05%) and deposit rates (-0.20%), the ECB will add purchases of covered bonds and asset backed securities (ABS), starting in October. President Draghi also stressed that inflation expectations are now subdued and the Committee unanimously decided to take further actions should the situation so requires. He lowered the GDP forecasts for the euro area for 2014 and 2015 while revised lower the inflation to 0.6% in 2014.

EUR/USD key levels

At the moment the pair is retreating 0.94% at 1.3027 with the next support at 1.2992 (low Jul.15 2013) followed by 1.2966 (low Jul.11 2013) and then 1.2949 (high Jul.10). On the upside, a breakout of 1.3110 (low Sep.2) would aim for 1.3160 (high Sep.3) and finally 1.3196 (high Aug.29).

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