EUR/USD testing offers near 1.0665, ECB Draghi eyed

After having reversed a pike to daily highs at 1.0685, the EUR/USD pair continues to trade in a 20-pips narrow range, although underpinned by risk-averse market conditions.

EUR/USD awaits Draghi                                                                                    

Currently, EUR/USD trades +0.70% higher at 1.0660, keeping its range-play intact around the mid-point of 1.06 handle. The common currency pair remains stuck amid a phase of downside consolidation seen in the US dollar against its major peers and risk-off moods, triggered by extended weakness in oil prices and negative European equities.

The upside attempts in the EUR/USD pair continues to find sellers around 1.0665 region, as a minor-recovery in the US treasury yields cap further gains, while the downside remains cushioned near 1.0640 region on the back of increased demand for the funding currency euro, in wake of poor sentiment towards risky assets.

Markets now eagerly await ECB Chief Draghi’s speech amid thin calendar, while month-end flows will continue to remain one of the drivers for today. Draghi is due to testify about the bank’s perspective on economic and monetary developments and the consequences of the Brexit before the Parliament's Economic Committee, in Brussels.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0685 (weekly high). A break beyond the last, doors will open for a test of 1.0700 (round figure) and from there to 1.0741 (20-DMA). On the flip side, the immediate support is placed at 1.0605 (daily pivot) below which 1.0550 (psychological levels) and 1.0515 (multi-month low) could be tested.

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