FxWirePro: EUR/USD runs out of steam ahead of Yellen speech
The EUR /USD pair declined on Wednesday as dollar recovered after data showed rising consumer prices and as investors awaited a speech by Federal Reserve Chair Janet Yellen. U.S. consumer prices increased in December as …
The EUR /USD pair declined on Wednesday as dollar recovered after data showed rising consumer prices and as investors awaited a speech by Federal Reserve Chair Janet Yellen.
U.S. consumer prices increased in December as households paid more for gasoline and rental accommodations, leading to the largest year-on-year rise in 2-1/2 years.
Consumer Price Index rose 0.3 percent last month after gaining 0.2 percent in November. In the 12 months through October, the CPI increased 2.1 percent, the biggest year-on-year gain since June 2014. The CPI rose 1.7 percent in the year to November.
Ahead in the US session traders are awaiting for a speech by the Fed's Yellen on interest rate policy to give fresh direction to the dollar.
The ongoing weakness is set to continue for this pair as the resistance level at 1.0766 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
To the upside, the immediate resistance can be seen at 1.0711, a break above this level would expose the pair to next resistance level at 1.0766.
To the downside, immediate support can be seen at 1.0660, a break below at this level will open the door towards next level at 1.0621.
