The single currency has deflated from session tops vs. the greenback, with EUR/USD now receding to the 1.1180/70 band, down smalls for the day.

EUR/USD turns negative following Draghi

Spot met some selling pressure following Draghi’s testimony before the European Parliament. Draghi stressed that further monetary support is still necessary, while downside risks to growth in the region continue to dwindle.

In the meantime, the pair is gravitating within a narrow range amidst very thin trade conditions following holidays in the UK and the US, all framed within the broader correction lower from last week’s 2017 tops in the vicinity of 1.1270.

Data wise today, EMU’s M3 Money Supply expanded at an annualized 4.9% and Private Sector Loans rose 2.4% YoY in April, both prints coming in below expectations.

From the speculative community, EUR net longs stayed on the rise during the week ended on May 23, reaching the highest level since late October 2013, as per the latest CFTC report.

EUR/USD levels to watch

At the moment, the pair is flat at 1.1180 and a breakout of 1.1190 (high May 29) would target 1.1235 (high May 26) en route to 1.1250 (high May 25). On the flip side, the immediate support aligns at 1.1158 (low May 26) seconded by 1.1073 (76.4% Fibo of 1.1300-1.0339) and finally 1.1050 (20-day sma).