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EUR/USD drops to 22-month low on Draghi's comments - FXStreet

FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik observes that ECB head Mario Draghi's remarks today suggesting a possibility of employing additional QE tools sent EUR/USD to a new 22-month low at 1.2696.

Key quotes

"The ECB head has finally backed up the statement made 2 years ago on doing whatever it takes to save Europe, albeit market may be reading is again too little too late."

"The pair broke below a critical support level, 1.2740, and remains below it, which keeps the risk to the downside both short and longer term. In the 1 hour chart, price remains well below a bearish 20 SMA, momentum heads strongly south below 100 and RSI partially corrects extreme oversold readings."

"In the 4 hours chart technical readings maintain a strong bearish momentum, with renewed selling pressure below 1.2700 exposing 1.2660 next static support."

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