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EUR/USD hits fresh highs as Yellen speaks following historic rate hike

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - EUR/USD bounced from 1.0885 and rose breaking above previous highs, hitting 1.0992 after the first words of Janet Yellen. Then it moved of daily highs, but is was holding above 1.0940 as the US dollar reverses across the board.

    The Federal Reserve rose the interest rate to 0.25% - 0.50%, and like Yellen said it ended an era. The central bank said that further hikes would be gradual. After the release of the statement, greenback rose in the market hitting new highs but then bounced to the downside, erasing all gains.

    Yellen is speaking and then will answer journalists questions while trades will look for clues about the future path of monetary policy.

    EUR/USD within weekly range

    Despite the historic move by the FED, EUR/USD still remains moving sideways within the range of the previous days. To the upside, the key resistance continues to be between 1.1030 and 1.1060 that capped the upside during the last five trading days and were also the 100 and 200-day MA currently stand. A break higher could open the doors for an extension of the bullish run.

    On the opposite direction, 1.0900 is the area to watch. Recently the pair traded momentarily below but it was rejected. A consolidations under 1.09 would weaken the euro in the short-term, while below, the next support to watch is the 20-day MA located at 1.0780/90.



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