EUR/USD downside tests 1.0640

FXStreet (Edinburgh) - The euro is now looking to regain the mid-1.06s vs. the greenback after EUR/USD dropped to fresh 12-year lows in sub-1.0640 levels.

EUR/USD weaker on Draghi

The pair intensified its decline after ECB’s Mario Draghi stated (hoped?) that the current QE programme should reinvigorate inflation expectations, adding that the current monetary policy is bolstering the recovery in the region. Regarding the inflation, President Draghi emphasized that consumer prices could remain in low levels or drop to the negative territory in the upcoming periods.

Collaborating with the downside, the greenback, in terms of the US Dollar Index (ticker DXY) is trading above 99.00 the figure, levels last seen in September 2003.

EUR/USD relevant levels

As of writing the pair is losing 0.43% at 1.0652 and a breakdown of 1.0638 (12-year low Mar.11) would target 1.0502 (low Mar. 21 2003) and finally 1.0335 (2003 low. Jan.3). On the flip side, the initial hurdle lines up at 1.0719 (hourly high Mar.11) followed by 1.0855 (high Mar.10) and then 1.0906 (high Mar.9).