EUR/USD sinks to lows near 1.1160

By FXStreet The offered tone around the single currency is now intensifying, sending EUR/USD to quickly break below the 1.1200 handle.

US Dollar has picked up further pace following the Fed’s Semi-annual Monetary Policy Report and Yellen’s statement. Yellen has once again reiterated that increases in Fed-Funds rate will follow a gradual path, and that financial conditions have recently become less supportive of economic growth.

In her testimony before Congress, Fed Chief J.Yellen regarded factors keeping consumer prices subdued as transitory, while she emphasized the ‘data-dependent’ stance of the Federal Reserve.

EUR/USD levels to watch

The pair is now retreating 1.14% at 1.1164 and a breach of 1.1055 (200-day sma) would open the door to 1.0979 (20-day sma) and finally 1.0904 (55-day sma). On the flip side, the next up barrier lines up at 1.1460 (monthly high Sep.18) ahead of 1.1496 (monthly high Oct.15) and finally 1.1713 (post-PBoC high Aug.24).
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Source:: FX Street