EUR/USD analysis: stocks at records hit the common currency

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1417

It was a really bad day for the greenback, but the common currency was unable to benefit from its rivals' weakness, plunging with the strong momentum triggered in worldwide equities by Fed's Yellen. The chief of the American central bank testified before the Congress, with her statement released 90 minutes before the event. The document was seen as dovish, as policymakers noted uncertainty surrounding inflation, and while reaffirming that they are still in the tightening path, it won't take much more rate hikes to reach what they consider "normal." After the statement and the Q&A, market players reconsidered that Yellen was not that dovish after all, but the dollar remained under pressure anyway, as news coming from different fronts, such as Canada rising rates, or strong employment data in the UK, fueled demand for high yielding currencies.

The EUR/USD pair closed the day above the 1.1400 figure, having reached a fresh 2017 high of 1.1489 at the beginning of the day, and despite the sharp intraday retracement, the downward potential remains limited according to the 4 hours chart, as the price settled a few pips above a still bullish 20 SMA, whilst technical indicators are currently bouncing from their mid-lines, after correcting overbought conditions reached earlier on the day. The pair has an immediate support in the 1.1380/90 region, where buying interest surged ever since the week started, followed by a daily ascendant trend line currently around 1.1340.

Support levels: 1.1385 1.1340 1.1290

Resistance levels: 1.1460 1.1490 1.1525

View Live Chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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