The Euro (EUR) rallied against the US dollar (USD) on Friday, increasing the price of EURUSD to more than 1.0650, following the release of some key economic news. The technical bias remains bearish because of the lower low and lower high in the recent downside move.
Technical Analysis
As of this writing, the pair is being traded around 1.0684. A hurdle can be noted near 1.0710, the horizontal l resistance area as demonstrated in the given below daily chart. A break and daily closing above the 1.0710 resistance area shall incite renewed buying interest, validating an upside rally towards the 1.0855 resistance zone.
On the downside, a support can be noted around 1.0517, the horizontal support area ahead of 1.0500, the confluence of psychological number as well as critical support zone. A daily closing below the 1.0500 support area shall incite renewed selling pressure, validating a move towards the 1.0350 support zone.
Yellen’s Speach
The U.S. economy is closing in on the Federal Reserve’s goals, giving the central bank impetus to start reducing the extreme levels of support it has provided over the past decade, Chair Janet Yellen said in a speech Wednesday. After more than a decade of benefiting from historically aggressive easing measures, the economy is “close” to the Fed’s objectives, though policy removal is expected to be slow, Yellen said in San Francisco. The speech, to the Commonwealth Club, essentially served as a monetary policy primer, though she did drop some hints about the road ahead.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term.
Trade global forex with the best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT
