• The EUR/USD declined at the beginning of the US session as the pair found selling interest after European Central Bank President Mario Draghi played down a recent rise in euro zone inflation.
   
• The ECB announced it would maintain its negative interest rate policy and maintain a record pace of asset purchases to stimulate tepid growth.
   
• The pair also came under pressure after data showed the number of Americans filing initial claims for unemployment benefits fell unexpectedly last week back to near the lowest levels in decades.
   
• Initial claims for state unemployment benefits declined by 15,000 to a seasonally adjusted 234,000 for the week ended Jan. 14.
   
• Further upside is expected to be limited as the pair finds strong resistance at 1.0677 which should limit upside and bring a decline towards lower levels. 
   
• To the upside, immediate resistance can be seen at 1.0605, a break above this level would take the pair towards next resistance level at 1.0632 levels.
   
• To the downside immediate support can be seen at 1.0579, a break below this level will open the door towards next level at 1.0545.
  
  Resistance Levels
  
  R1: 1.0605 (50 % Retracement level)
  
  R2: 1.0632 (61.8 % Retracement level)
  
  R3: 1.0677 (Daily high)
  
  Support Levels
  
  S1: 1.0579 (38.2% Retracement level)
  
  S2: 1.0545 (23.6% Retracement level)
  
  S3: 1.0500 (Psychological levels)