EUR/USD remains in range, unresponsive to Draghi remarks

The only event that could potentially produce some spark on Monday failed to provide a catalyst for the EUR/USD pair. Following the remarks by ECB President Draghi, the pair is trading at 1.1180, virtually unchanged on the day.

While giving his remarks at the Quarterly Hearing before the Committee on Economic and Monetary Affairs (ECON) of the European Parliament in Brussels, Draghi said that the downside risks to the economic outlook have been diminishing, however, it was too early to assume that a change to the extraordinary amount of monetary policy was needed. He further added that the wage pressures were not sufficient enough to support the inflation toward the bank's medium-term target. 

• Draghi Speech: Economic upswing is becoming solid
• Draghi speech: There are some signs of pickup in inflation

Tomorrow's economic docket will feature a batch of sentiment data from the euro zone. Although the consumer confidence is expected to remain unchanged at -3.3 in May, industrial confidence, business climate, and industrial confidence figures are expected to show improvements. Later in the day, personal spending/income and PCE price index will be released from the U.S. 

Technical outlook

1.1100 (psychological level/ Fibo 23.6% of April 10 - May 22 rise) is a critical support for the pair and a decisive breakthrough could allow a deeper correction towards 1.10 (psychological level/Fibo  38.2% of April 10 - May 22 rise) and 1.0960 (May 7 low). On the upside,  resistances could be encountered at 1.1200 (psychological level), 1.1265 (May 22 high) and 1.1300 (Nov. 9 high).

• EUR/USD consolidating below 1.1300 – Commerzbank
• EURUSD to orbit the 1.1200 neighbourhood – OCBC Bank