EUR/USD (current price: 1.1210)
The most traded pair experienced extreme volatility following the speech of the Fed Chair, and it got below the all important 1.1285 support as we expected. The pair finished the week near the lower boundary of the advancing short-term trend channel, with the 200-day MA still found just below the current rate at 1.11, providing strong support. The speech of Mrs. Yellen might trigger a meaningful correction, but the long-term picture remains neutral for the cross.
Our assessment: EUR/USD is still stuck in a broad neutral long-term trading range, and the pair is currently right at the midpoint of the range near 1.12 pointing to indecision among investors.
