FXStreet (Mumbai) - The EUR/USD pair surrendered gains to trade negative around 1.00715, while the 2-yr German bund yield hit a record low ahead of Draghi’s speech due in an hour.
Eyes Draghi speech
The immediate focus is now on Draghi speech. In the last couple of days the news have been repeatedly hitting wires that ECB prefers a deposit rate cut in December over more QE. Markets will be eyeing Draghi speech to see if the President confirms the rumours or keeps hopes alive for a deposit rate cut along with more QE.
The bond yields have dropped in anticipation of dovish comments from Draghi. The 2-yr German bund yield hit a record low of -0.36%. The EUR/USD also slid lower from the high of 1.0774.
EUR/USD Technical Levels
The immediate resistance is located at 1.0774 (daily high), above which gains could be extended to 1.08 levels. A break above would open doors for 1.0871 (hourly 200-MA). On the other side, a break below 1.07 would open doors for a re-test of 1.0674 (Nov 10 low).
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