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EUR/USD drops to 1.2460 on Draghi

FXStreet (Edinburgh) - The shared currency is nose-diving on Friday, pushing EUR/USD well below 1.2500 following the dovish appreciations by ECB’s Draghi.

EUR/USD weaker on Draghi

The pair is reacting with a sharp pullback to fresh intraday lows around 1.2480 after President Draghi assessed the importance of the inflation to come back to the 2% target as soon as possible. Although he said that inflation expectations in the longer term are still consistent with price stability, in the short-term they remain ‘excessively low’. He also said that the European Central Bank will use all means to push consumer prices back to the 2% target, including an adjustment of the composition, pace and size of the asset purchases if needed. Furthermore, he stressed that the ECB could widen the channels of intervention if the situation so requires it.

EUR/USD key levels

At the moment the pair is losing 0.59% at 1.2469 with the next support at 1.2442 (low Nov.18) ahead of 1.2398 (low Nov.4) and finally 1.2394 (low Nov.11). On the flip side, a breakout of 1.2602 (high Nov.19) would aim for 1.2614 (low Oct.23) and then 1.2617 (high Oct.31).

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