EUR/USD struggles to extend gains above 1.12

By FXStreet Offered tone around US dollar has run out of steam with EUR/USD pair struggling to extend gains above 1.12 handle.

Rejected at 1.1216

Stop clocked a high of 1.1216 levels before surrendering gains to trade around 1.1195 levels. Dollar selling gained pace after Fed’s Williams stated the central bank has studied negative rates, but the policymakers eventually reiterated that the economy may be able to withstand two rates hikes if conditions are met.

Consequently, dollar managed to recover losses and is now struggling to retake 1.12 handle. The focus now is on Fed’s Yellen speech due later today.

EUR/USD Technical Levels

The immediate hurdle is noted at 1.1216 (daily high), above which the currency pair could run into a wall of resistance at 1.1236 (38.2% of 1.0463-1.1714) and 1.1257 (61.8% of 1.1714-1.0517). Conversely, acceptance below support at 1.1173 (23.6% of 1.0517-1.1376) would expose 1.1115 (50% of 1.1714-1.0517) and 1.11 handle.
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Source:: FX Street