- The EUR /USD pair initially dipped on Thursday but recovered some of its earlier losses ahead of Federal Reserve Chair Janet Yellen's second day of testimony and a day after she signaled a dovish stance on interest rates.
- Yellen's comments were part of her two-day semi-annual monetary policy testimony before Congress. She will resume her testimony at 10 a.m. ET (1400 GMT).
- Investor cheered Yellen's view of gradual increase in rates on Wednesday, with world shares hitting their fourth all-time high in less than a month on Thursday.
- Further upside in this pair is expected to be limited as the pair finds strong resistance at 1.1462 which should limit further upside and bring decline towards lower levels in the short term.
- To the upside, immediate resistance can be seen at 1.1415, a break above this level would take the pair towards next resistance level at 1.1440.
- To the downside, strong support can be seen at 1.1367 levels, a break below this level will open the door towards next level at 1.1331.
Resistance Levels
R1: 1.1415 (50% Retracement level)
R2: 1.1440 (July 7th high)
R3: 1.1462 (61.8% Retracement level)
Support Levels
S1: 1.1367 (38.2% Retracement level)
S2: 1.1331 (July 4th lows)
S3: 1.1310 (23.6% Retracement level)
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