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EUR/USD finds support ahead of 1.2400

FXStreet (Córdoba) - The EUR/USD sell-off triggered by Draghi's comments found an interim bottom ahead of the 1.2400 support level, giving way to a quieter phase ahead of the Wall Street opening.

European Central Bank President, Mario Draghi, said the bank will do what it must to raise inflation back to its target of 2%, fueling expectations of a full-blown QE program and putting the euro under renewed pressure.

After dropping more than 130 pips, EUR/USD bottomed out at a 1-week low of 1.2414 and it is currently trading at 1.2432, recording a 0.85% loss on the day.

EUR/USD levels to watch

If EUR/USD breaks below 1.2400, next supports are seen at 1.2393 (Nov 11 low), 1.2357 (2014 low Nov 7) and 1.2342 (Aug 21 2013 low). On the flip side, 1.2500 is immediate resistance to overcome, followed by 1.2525 (21-day SMA) and 1.2560 (38.2% Fibo of 1.2883-1.2357).

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