EUR/USD sinks to 1.1250 after Draghi hints to additional stimulus

The greenback continues to gain traction against the shared currency, with the EUR/USD pair extending its slide further below 1.1300 handle to currently trade around 1.1250/60 band, off session low near 1.1240 area.

The pair attracted fresh offers after the ECB President Mario Draghi raised concerns over low inflationary (deflationary) environment and showed central bank's readiness for additional stimulus measures.

Adding to the this, a fresh bout of risk aversion trade, following the release of latest Brexit poll from IG Survation showing only a marginal lead of only 1% to the 'Remain' camp, boosted the relative safe-haven appeal of the greenback.

Meanwhile, traders will now scrutinize Fed Chair Janet Yellen's answers to the Senate Banking Committee's questions, during her testimony on the Semiannual Monetary Policy Report, which might lead to further volatile move in the pair.

Technical levels to watch

From technical perspective, the pair broke through its immediate support near 50-day SMA and now seems to be headed towards testing 100-day SMA support near 1.1235 region. A follow through selling below 100-day SMA support is likely to increase the pair's vulnerability to tumble below 1.1200 handle and head towards testing a short-term ascending trend-channel support, currently near 1.1185-80 area.

Meanwhile on the upside, 50-day SMA support break-point near 1.1300 handle, now seems to act as immediate resistance for the pair. Momentum back above 50-day SMA resistance is likely to confront resistance around 1.1330 level, above which the pair is likely to make a fresh attempt towards reclaiming 1.1400 strong resistance.