High yielders run, commodities are also strong, and the poor greenback keeps plummeting, compliments to Mrs. Janet Yellen, FED's Chair. Hopes that she will soften the ultra dovish tone of the latest FOMC statement got smashed on Tuesday, when she spoke at the Economic Club of New York, and offered an accommodative rhetoric.
The EUR/USD pair advanced up to 1.1332 so far today, stalling its run after the release of sentiment data in Europe, showing that Consumer confidence remained flat at -9.7 in March, while the Economic Sentiment indicator missed expectations, down to 103.0 from 103.8 expected. The US will release its ADP private survey in a couple of hours, which will give some clues over how the Nonfarm Payroll may come this Friday, and if negative, could hit the dollar further.
View the Live chart of the EUR/USD
The pair´s technical picture is clearly bullish, with the price holding above 1.1300, a handful of pips below the mentioned high, but holding strong amid broad dollar's sell-off. The 4 hours chart shows that the 20 SMA has turned sharply higher below the current level, while the technical indicators have accelerated their advances within overbought territory, maintaining the risk towards the upside. The pair has an immediate resistance at 1.1341, March 17th high, followed by 1.1375, the year high posted last February. Should the price extend beyond this last, there is scope to advance up to 1.1460, a major static resistance level.
The immediate support, on the other hand, is 1.1285, with a break below it probably triggering a downward corrective movement towards the 1.1240 region.
Latest updates on the EUR/USD Forecast
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