The dollar strengthened against most competitors and dragged EUR/USD
to fresh 3-month lows following a series of supportive US economic data and
latest comments from Fed Chair Janet Yellen.
Fed
Chair Janet Yellen said the US economy is performing well although
she acknowledged some slowdown in employment. Regarding monetary policy, Yellen
said FOMC thought it could be appropriate to move in December but that no
decision was made. She reiterated that December would be live meeting as they
continue to monitor data.
Investors will be scrutinizing with special
attention next US
employment report.
EUR/USD struck its lowest level since
July at 1.0844 before finding support. At time of writing, the pair is trading
at the 1.0865 zone, 0.87% below its opening price.
EUR/USD
technical levels
In terms of technical levels for EUR/USD,
short-term supports are seen at 1.0808(July low) ahead of 1.0784 (Apr 24 low)
and not much until 1.0700 (psychological level). On the other hand, next
resistances could be found at 1.1071 (Oct 30 high), 1.1095 (Oct 28 high) and
then 1.1105 (200-day SMA).
