Euro at fresh 7-months lows as Yellen boosts US dollar

By FXStreet FXStreet (Córdoba) – EUR/USD dropped quickly to 1.0549 hitting the lowest level since April 14 and then bounced, but continued to trade under pressure.

USD soars on Yellen speech

Janet Yellen, Chair of the Board of Governors of the Federal Reserve, said that the labor market improvements have improved her confidence on the inflation target. She warned that delaying the lift-off too long creates risks. “Holding the federal funds rate at its current level for too long could also encourage excessive risk-taking and thus undermine financial stability”, said Yellen.

Greenback rose sharply across the board after the speech was released. But so far, the Swiss franc continues to be the best performer in the currency market.

EUR/USD: Short-term levels

Currently it trades at 1.0580, almost 50 pips below yesterday’s closing price. To the downside, immediate support might be seen at 1.0550 (daily low), 1.0520 (Apr 13 low) and 1.0500 (psychological level). On the opposite direction, resistance could be seen at 1.0595 (55-hour MA) 1.0605 (20-hour MA) and 1.0632 (daily high).
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Source:: FX Street