EUR/USD suppressed near 3-week lows, Draghi in focus

After yesterday's brief pause, the EUR/USD pair resumed with its near-term bearish slide and dropped to fresh 3-week lows near 1.0635 region. 

Selling pressure around the shared currency picked-up pace on Tuesday as investors continue to readjust their expectations over ECB's near-term monetary policy outlook, especially after last week's report (via Reuters) that revealed policymakers concern over the hawkish misinterpretations of the ECB decision announcement in March. 

Hence, market participants would keenly scrutinize ECB President Mario Draghi's speech on Tuesday for additional clarity, which would eventually determine the near-term direction for the shared currency.

Meanwhile, a fresh bout of greenback buying interest, with the key US Dollar Index spiking to fresh session high near 100.60 region, further collaborated to the pair's downslide in the past hour or so. 

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Market seems to have largely ignored the better-than-expected release of Euro-zone retail sales figure, posting a growth of 0.7% in February, with the greenback price-dynamics being an exclusive driver of the pair's movement. 

Moving ahead, traders would take cues from the US economic docket, featuring the release of trade balance factory orders due later during the NA session.

Technical outlook

"The pair has an immediate support at 1.0620, with a break below it needed to confirm additional slides, firstly towards 1.0590 and later to 1.0565. The 1.0670 region is the immediate resistance, and above it, the pair can recovery up to the 1.0710 price zone, where the pair is expected to resume its decline." writes Valeria Bednarik, Chief Analyst at FXStreet.