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EUR/USD hits fresh lows after Draghi

FXStreet (Córdoba) - Following a short-lived recovery, EUR/USD came under renewed pressure and fell to fresh 14-month lows after Draghi’s speech before the Committee on Economic and Monetary Affairs of the European Parliament.

Draghi says ready to use additional tools if necessary

Among remarks, Draghi said the economic recovery has lost momentum and that unemployment remains unacceptably high. He also commented September measures - asset buying programs- will complete and complement the measures from June - TLTRO. However, Mr Draghi reiterated the ECB is ready to use additional unconventional instruments within the mandate and alter the size and/or the composition of unconventional interventions if inflation remains too low for too long.

Dovish comments from Draghi coupled with disappointing Eurozone consumer confidence data sent EUR/USD to its lowest level since July 2013 at 1.2820 in recent dealings. At time of writing, EUR/USD is trading at 1.2825, 0.06% below its opening price.

EUR/USD technical levels

As for technical levels, immediate supports are seen at 1.2820 (fresh low), 1.2800 (psychological level) and 1.2755 (Jul 9 2013). On the other hand, resistances could be found at 1.2867 (intraday high), 1.2908 (10-day SMA) and 1.2930 (Sept 18 high).

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