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22 May 2015
EUR/USD drops further on Yellen
FXStreet (Edinburgh) - The European currency is now depreciating further vs. the dollar, dragging EUR/USD to the 1.1020/10 band.
EUR/USD softer following Yellen
After five consecutive weeks of gains, the pair is now closing this week in the red territory mainly following the strong re-emergence of the US dollar and the return of more normal market conditions in the German Bunds after last week’s sharp sell off.
In another direction, the greenback is advancing further after Chairwoman Yellen argued that the Federal Reserve remains on track to hike at some point this year. She also emphasized that the weakness seen during the first months of the year is only temporary, expecting that the domestic economy will show better results in the upcoming periods. She admitted that the pace of wage growth has been disappointing in spite of ‘some encouraging signs’ as of late.
EUR/USD levels to consider
As of writing the pair is down 0.88% at 1.1013 with the immediate support at 1.1002 (low May 22) ahead of 1.0994 (50% of 1.0521-1.1468) and then 1.0978 (daily cloud top). On the other hand a breakout of 1.1209 (high May 22) would aim for 1.1217 (38.2% of 1.1468-1.1062) and then 1.1243 (10-d MA).
EUR/USD softer following Yellen
After five consecutive weeks of gains, the pair is now closing this week in the red territory mainly following the strong re-emergence of the US dollar and the return of more normal market conditions in the German Bunds after last week’s sharp sell off.
In another direction, the greenback is advancing further after Chairwoman Yellen argued that the Federal Reserve remains on track to hike at some point this year. She also emphasized that the weakness seen during the first months of the year is only temporary, expecting that the domestic economy will show better results in the upcoming periods. She admitted that the pace of wage growth has been disappointing in spite of ‘some encouraging signs’ as of late.
EUR/USD levels to consider
As of writing the pair is down 0.88% at 1.1013 with the immediate support at 1.1002 (low May 22) ahead of 1.0994 (50% of 1.0521-1.1468) and then 1.0978 (daily cloud top). On the other hand a breakout of 1.1209 (high May 22) would aim for 1.1217 (38.2% of 1.1468-1.1062) and then 1.1243 (10-d MA).