The Euro (EUR) inched lower against the US Dollar (USD) on Monday, decreasing the price of EUR/USD to less than 1.0700 following the ECB’s head Mario Draghi’s speach. The technical bias remains bearish because of a lower high in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded around 1.0676. A support may be seen near 1.0618, the trendline support area as demonstrated in the given below daily chart with brown color. A break and daily closing below the 1.0618 trendline support shall incite renewed selling interest, validating a move towards the 1.0400 support zone which is a psychological number.

On the upside, the pair is expected to face a hurdle near 1.0710, the 38.2% fib level ahead of 1.0819, the 50% fib level and then 1.0990, the upper trendline resistance as marked with red color in the above chart. The technical bias shall remain bearish as long as the 1.0819 resistance zone is intact.

ECB’s Mario Draghi Speach

European Central Bank (ECB) president Mario Draghi has said the Eurozone should make it easier for companies to fail in order to allow stuttering productivity in the region to accelerate, while his criticised the deregulatory impulses of Donald Trump in a thinly veiled attack. He said: “Ensuring that failed firms are able to smoothly exit the market is key to enabling capital and labour to be allocated to where it can be more productively used.” The ECB has continually pushed for structural reforms amongst EU countries, with Greece in particular forced to implement changes in exchange for financial assistance.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term.