Chart: WorldWideMarkets Alpha Trader
The euro was initially pushed higher in Europe to a high of 1.1389 edging closer to the 1.1400 level on extended gains against the softer dollar as the market continued to digest Yellen's testimony yesterday to the Senate Banking Committee where she essentially said that the Fed is not in a rush to raise interest rates. Yellen chose her words carefully and took a non-commiment stance towards tightening monetary policy which dissapointed many who have anticipated the Fed to raise rates as early as June this year.
The gains of the euro were quickly capped as profit taking ensued pushing the rate lower from 1.1389 to 1.1340. The Greek Finance Minister Varoufakis said the discussion of debt restructuring will begin immediately. He said that Greece had no problem with liquidity but the problem lies with repaying the IMF and ECB in the summer.
Although both the EU and Greece shows the willingness to compromise, Germany's Chancellor Angela Merkel said there still remains much work to be done on the Greece situation. Merkel and the German lower house Bundestag is in the process debating the reluctant approval of Greece's 4-month extension of the bailout loan.
Resistance: 1.1400, 1.1430, 1.1450
Support: 1.1300, 1.1285, 1.1275, 1.1270
Option Expiry: 1.1355