EUR/USD back to daily lows as Yellen send USD higher

The US dollar gained momentum in the market after Janet Yellen made positive comments on the job market. She said to graduates that they “are entering the strongest job market in nearly a decade”. 

EUR/USD was testing the 1.0450 resistance area and the 20-hour moving, after Yellen, it turned to the downside. It fell to 1.0408, hitting a fresh daily low, slightly below previous lows. 

The intraday tone continues to favor the downside as the US dollar remains strong in the market. The US Dollar Index is back at the 103.00 area, near 14-year highs while EUR/USD trades at 1.0415/20, 20 pips below Friday’s closing price. 

EUR/USD levels to watch 

To the upside, resistance level could be seen 1.0450 (20-hour moving average), 1.0475/80 (daily high) and 1.0500 (psychological). On the flip side, support might lie at 1.0400 (Dec 16 low), 1.0365 (Dec 15 low) and 1.0330/35 (Jan 2003 low).