EUR/USD set to break key support near 1.1160 ahead of Draghi?

The EUR/USD pair extends its bearish consolidative mode in early Europe, with the bears now looking to accelerate the downside below a break of the key support near 1.1160.

EUR/USD: 1.1100 back on sight?

The spot is seen meandering near five-day lows as the greenback remains better bid against most of its majors amid the latest comments from the US President Trump on the ‘huge tax reforms”. Meanwhile, the USD index hovers near Friday’s high of 97.47, with upside lacking momentum amid subdued treasury yields across the curve.

Moreover, the Euro remains vulnerable ahead of the speech by ECB President Draghi scheduled in Madrid during the American session. ECB Chief Draghi is expected to offer nothing new in his speech, reiterating that the Eurozone recovery remains solid, while expressing his concerns over inflationary pressures.

Amid holiday-thinned trading, the EUR/USD pair will keep its recent retreat intact from multi-month tops, while exaggeration of the moves cannot be ruled out amid irregular volatility. The UK and US markets are closed in observance of the Spring Bank Holiday and Memorial Day respectively.

EUR/USD Technical Levels

Karen Jones, Analyst at Commerzbank noted: “EUR/USD near term is likely to consolidate: No change, the Euro is consolidating below the 1.1300 November high and we note the TD perfected set up. We would allow for some consolidation/retracement just below this level. However while dips lower hold over the near term uptrend at 1.0996, the market stays immediately bid.  The market has potential to reach the highs from mid 2016 circa 1.1400, however we believe it will struggle here from a longer term perspective. We note the 78.6% retracement lies at 1.1343.”