EUR/USD weaker, around 1.1050 ahead of Draghi

The overnight decline in EUR/USD seems to have found decent support in the 1.1040 area for the time being.

EUR/USD looks to Draghi, ADP

The pair met increasing selling pressure after ‘Brexit’ jitters have ignited a flight-to-safety move early in Asian trading hours, sparking a significant recovery in the greenback and the rest of safe havens.

Spot has quickly accelerated its decline after breaking below the critical 200-day sma in the 1.1100 neighbourhood, remaining vulnerable ahead of the opening bell in Euroland and the speech by President M.Draghi.

On the USD-side, the ADP report is due later followed by trade balance figures, the ISM Non-manufacturing  and the FOMC minutes.

EUR/USD levels to watch

The pair is now losing 0.19% at 1.1055 and a break below 1.0913 (post-Brexit low Jun.24) would open the door to 1.0820 (low Mar.10) and finally 1.0709 (low Jan.5). On the other hand, the initial resistance aligns at 1.1095 (200-day sma) ahead of 1.1170 (base of the 6-month rising channel) and then 1.1196 (20-day sma).