FXStreet (Guatemala) - EUR/USD is trading soft on the back of Draghi's presser and dovish outlook, who was very concerned about China and EM's. He said a degree of accommodation will need to be re-examined at the December meeting having left the main refi rate unchanged at 0.05%, also the deposit rate unchanged -0.20% and the marginal lending rate unchanged 0.30%.
However, with the FOMC coming up next week, a lid should be kept on the dollar's rally. A key target currently is the daily 200 MA at 1.1124 while lows have only reached as far as the halfway mark, so far, on the 1.11 handle. There has not been a turnaround yet though which offers caution to the bulls looking for a cheaper euro with a focus on 1.1500 and 1.1600 and signals lower still.
EUR/USD levels
Technically, 1.1105 and 1.1088 are the September lows while the longer term targets to the downside are the 30 year channel at 1.0560 and 1.0457. For the meantime, a recovery to 1.1180 and a close below the 1.1220 level would indicate possible fading opportunities in a bear trend until the pre press conference levels and subsequent bullish closes take place above the hourly 20 SMA at 1.1299.
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