FxWirePro: EUR/USD reverses recent rally, bias back to downside

• The EUR/USD declined at the beginning of the US session on Wednesday as the single currency dipped after Federal Reserve Chair Janet Yellen said interest rates hikes would be gradual and will not have to rise much further to reach neutral rate.
   
• Yellen, in a prepared testimony to be delivered to Congress at 10 a.m. ET (1400 GMT), said the economy is healthy enough to absorb further gradual rate increases and the slow wind down of the Federal Reserve's massive bond portfolio.
   
• The testimony depicted an economy that, while growing slowly, continued to add jobs, benefited from steady household consumption and a recent jump in business investment.
   
• The ongoing weakness is set to continue for this pair as the resistance level at 1.1500 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels. 
   
• To the upside, immediate resistance can be seen at 1.1452, a break above this level would take the pair towards next resistance level at 1.1500.
   
• To the downside strong support can be seen at 1.1378 levels, a break below this level will open the door towards next level at 1.1309.
  
  Resistance Levels
  
  R1: 1.1452 (June 29th high)
  
  R2: 1.1500 (50% Retracement level)
  
  R3: 1.1585 (61.8% Retracement level)
  
  Support Levels
  
  S1: 1.1378 (July 10th lows)
  
  S2: 1.1309 (23.6% Retracement level)
  
  S3: 1.1280 (June 28th lows)

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest