EUR/USD: Bulls Take Charge on an Uncertain and Dovish Fed
EUR/USD has rallied to1.1263 so far ahead of Yellen's presser after a speech she is currently making at the Economic Club of New York.
Yellen has given a dovish backdrop to the Fed and explained that there will be incremental rate hikes, but at a slower pace than what they had anticipated. Yellen was concerned for low inflation readings and even mentioned that the Fed has 'considerable scope' for stimulus if needed, in respect of a turn of unexpected negative events for the economy. Yellen added that global developments and risks led to project slower path of rate hikes and that inflation is likely to remain below Fed target this year.
EUR/USD has been supported on the 4hr sticks by the ascending 20 sma at 1.1181 and on this event, the price rallied through the 55 sma on the same time frame of 1.1219. We are headed towards 1.1280 resistance guarding recent highs of 1.1342. To the downside, the 100 sma on the h4 sticks is the base of the recent bearish drift from aforementioned highs down at 1.1155, this is below the 1.1190 pivot and around S1 at 1.1160. A break there targets S3 at 1.1092.
(Market News Provided by FXstreet)