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EUR/USD challenges 1.0700 ahead of ECB Draghi’s speech

FXStreet (Mumbai) - The selling interest around the EUR picked-up pace in early European trades, pushing EUR/USD to fresh session just ahead of 1.07 handle.

EUR/USD eyes key support at 1.0683

Currently, the EUR/USD pair trades -0.26% lower at 1.0706, languishing close to fresh session lows struck at 1.0701 last minutes. The main currency pair failed once again to resist the hourly 200-SMA support at 1.0716 and met fresh supply, as the European traders hit their desks and favour the greenback in response to the overnight Fed speaks.

Moreover, the shared currency came under renewed selling pressure against the American dollar as markets begin to price-in the dovish comments likely to be delivered by the ECB Chief Draghi at his speech due later this session. While Thursday’s ECB accounts also echoed that the central bank is ready to more at its Dec 3 meeting, keeping the EUR broadly supressed.

Markets continue to digest the latest dismal German PPI data ahead of Draghi’s and Bundesbank President Weidmann’s speeches. While Fed Dudley’s speech will remain the highlight in a data-quiet US session.

Meanwhile, Germany’s Producer Price Index (PPI) dropped 2.3% y/y in Oct, following the 2.1% decline in the previous month.

EUR/USD Technical Levels

The pair tests 1.07 handle, with the immediate support seen at 1.0683 (Nov 19 NY low/ 1h 50-SMA). Selling pressure will intensify below the last, dragging the pair towards 1.0652 (Nov 19 daily low). While to the upside the next hurdle in sight is located at 1.0764 (Nov 19 high) and from there to 1.0780 (Nov 16 High).

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