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    EUR/USD touches downtrend at 1.13 after Yellen

    © Dukascopy Bank SA
    "The actual U.S. dollar decline has been more dramatic than we expected."
    - Commonwealth Bank (based on Bloomberg)

    Pair's Outlook
    EUR/USD became pretty much buoyant on Tuesday after dovish remarks by the Fed Chair Janet Yellen. Initial resistance area was penetrated relatively easily, while successful testing of the weekly R1 at 1.1250 paved the way for a surge up to 1.13. Daily technical indicators suspect the pair will extend the rally until the second supply zone for today at 1.1340. There we have got the current March high, weekly R2 and another downtrend line. In case the advance is not contained, the attention will then switch to the Feb high at 1.1377. Future dips have to be temporarily capped by the 55-day SMA at 1.1063.  

    Traders' Sentiment
    For the moment about 43% of all positions are bullish, down from 46% on Tuesday. However, almost 60% of pending orders in both 50/100-pip ranges are still set to acquire the Euro.

    © Dukascopy Bank SA

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