The euro gave up gains against the dollar on Monday after European Central Bank President Mario Draghi warned earlier the European recovery is losing steam. In U.S. trading, EUR/USD was unchanged at 1.2832, up from a session low of 1.2816 and off a high of 1.2868. The pair was likely to find support at 1.2754, the low from July 9, 2013, and resistance at 1.2994, Tuesday’s high. In remarks to the economic and monetary affairs committee of the European parliament, Draghi said economic activity in the euro area has slowed and added he saw a risk of a further downturn. “The economic recovery in the euro area is losing momentum. Following some moderate expansion in recent quarters, growth of the euro area real GDP came to a halt in the second quarter of this year,” Draghi said in prepared remarks of his speech. “The early information on economic conditions which we received over the summer has been somewhat weaker than expected. While industrial production and manufacturing orders in July gave some reason for optimism, more recent survey indicators have given no indication that the sharp decline registered in August has stopped.” He reiterated that the ECB expects inflation to remain at low levels over the coming months before increasing gradually in 2015 and 2016. Draghi said the ECB remains ready to use additional unconventional instruments within the bank’s mandate should it become necessary to further address risks of a prolonged period of low inflation. Data last week showed that the annual rate of euro area inflation was steady at 0.4% in August, the lowest level in almost five years. Draghi’s words served as the pair’s chief steering current, offsetting soft U.S. housing data. The National Association of Realtors reported earlier that existing home sales in the U.S. unexpectedly fell 1.8% to an annual unit rate of 5.05 million in August. Analysts had expected existing home sales to rise 1% to 5.20 million units. Elsewhere, the euro was down against the pound, with EUR/GBP down 0.37% at 0.7850, and down against the yen, with EUR/JPY down 0.14% at 139.75. On Tuesday, markets will track German and euro zone manufacturing purchasing managers’ indices.