EUR/USD has rallied with a broad based dollar sell-off, the gold on the rally through $1,200 and the Yen breaking down below the 113 handle. Yellen was the main focus overnight, but markets are not taking her optimism as a true picture of the near term potential. "The Fed did flag concerns about US financial conditions and the global outlook, but tempered these by noting that inflation expectations were not falling as much as some indicators suggest, that employment growth will still lead to wage inflation ahead, and that low long-term bond yields and oil prices are a positive, not a negative factor for US growth. In other words, the more that parts of the market price for Fed failure, the healthier the situation appears to the Fed and its band of “economies always return to equilibrium” experts.." explained analysts at Rabobank noting how Yellen survived in an uncomfortable arena of scrutiny. EUR/USD levels Valeria Bednarik, chief analyst at FXStreet explained, "The technical picture is still bullish, as in the 4 hours chart, the price has quickly recovered above a mild bullish 20 SMA, while the technical indicators resumed their advance within positive territory, after a limited downward corrective move." She added, "The line in the sand is the 1.1120 as only below this level the pair can be at risk of further declines. In the meantime, investors are generally targeting the 1.1460 region, a major static resistance that contained the upside for most of this past 2015." RSI (14) is at 62 on the 4hr chart while spot trades above the picot of 1.1256 with R1 at 1.1350 (trendline and key resistance, 1.0520 12th April 2015 low), R2 at 1.1407 and R3 at 1.1501. For more information, read our latest forex news.