EUR/USD inter-markets: door open for a visit of 1.0820

EUR/USD has quickly left behind the post-Brexit low at 1.0900 the figure following increasing selling pressure around the European currency after the ECB meeting on Thursday.

In fact, sell orders have picked up extra pace after President Mario Draghi said the Governing Council did not discuss tapering its QE programme while reiterating at the same time the central bank’s commitment to keep the ‘very substantial degree of accommodation’.

Yields in German and US money markets are trading on a positive fashion today, although the broader sentiment remains USD-supportive. The dollar remains well underpinned by expectations of a Fed’s rate hike in December, while CME Group’s FedWatch tool now points to a probability of nearly 70% of a rate hike by year-end.

After breaching key multi-month support lines, EUR/USD has now opened the door for a new visit of the critical support area around 1.0820 (March’s lows). If cleared, the next key support level should emerge in the 1.0700 neighbourhood, where sits the 2016 low.