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Dovish Draghi turns EUR/USD technicals lower – FXStreet

FXStreet (Barcelona) - Ani Salama, Analyst at FXStreet, notes that EUR/USD fell sharply on Friday, turning short-term outlook into negative after Draghi said the bank will do what it must to raise inflation back to its target of 2%.

Key Quotes

“Technically speaking, EUR/USD short-term perspective has turned bearish, with indicators pointing down below their midlines.”

“However, with the RSI in oversold levels in 1-hour charts, the euro might enjoy a consolidation phase ahead of another leg lower.”

“Next support stands at 1.2400, and a break below would signal the end of the correction and resume the broader bearish trend, with 2014 low at 1.2357, as immediate target.”

“On the other hand, EUR/USD needs to regain the 1.2560 area (38.2% Fibo of 1.2882-1.2357) to ease the bearish pressure.”

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