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EURUSD : Draghi Remarks & US Data Added Losses to the Pair

EURUSD was consolidating between the contracting support and resistance trend lines on the hourly chart ahead of the key US data. EUR weakened against Dollar after finding resistance from the resistance trend line and after the ECB President Mario Draghi remarks. Draghi mentioned that euro exchange rate is very important factor in monetary policy. Although the exchange rate is not included in the policy target but the appreciation in currency might impact the monetary policy. Higher EUR will have a downward impact on inflation and a threat on the recovery. He also mentioned that the central bank might choose a broad based asset purchase program if the inflation outlook worsened.

Upbeat US Core Durable Goods data added losses to the pair and the pair broke down from the support trend line.US Core Durable Goods are up by 2% beating the economist's expectation for a .6% increase.The pair should find support at 1.3794 and at 1.3788 of it continues to decline.