EURUSD rises above upside targets on initial comments but quickly retreats

The EURUSD initially rallied as ECB President Mario Draghi gave a more upbeat assessment of the EU economy. However that assessment and the markets assessment seem to be at odds and the price is trading back lower. The EURUSD initially moved above the broken trend lines on the hourly chart and the low price from January on the first move higher. Those levels come in at 1.1089, 1.1097 and 1.1104 respectively. The high extended up to 1.11136.

The move back lower has now taken the price to the lows for the day as traders weigh comments with their beliefs. The price is currently testing the low extreme at the 1.1021-25 area. The lower trend line on the hourly chart above comes in at the 1.1000 level. This will be a target on break.

Volatile trading conditions persist, but the sellers lined up above and should continue to keep a lid on the pair on any rallies.