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Forex technical analysis: EURUSD consolidates in narrow range

Yellen awaited

The EURUSD surged higher and higher on Friday. Today there is up and down consolidation. The 1.1356 level is the 50% retracement of the move down from the May high to the May low. The price has moved above and below that level in the London session with a ceiling being developed at the 1.13625 level (EURUSD is floating like a butterfly but not stinging like a bee).

Looking at the 5- minute chart below the price has been waffling above and below the 100 and 200 bar MAs, but the market focus is on the Fed chair and her comments at 12:30 PM ET/1630 GMT.

Over the weekend, Feds Mester said the weak employment report has not changed her view . She tends to be a hawk. Needless to say, the chairs comments are the wild card. Fed's Lockhart is speaking now on Bloomberg so eyes and ears are open.

The other key level to eye - probably post Yellen if she is more hawkish and the market believes - is the 1.13000 level . The 200 bar MA on the 4 hour chart is at that level. It was a liftoff point from Friday. Should the price rotate toward that level I would expect buyers but much depends on Yellen's comments.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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