Review of Today's EURUSD Forex long

By Eric Perez

The USD dropped after the FED Chair Janet Yellen said that U.S. central bankers should be cautious in raising interest rates, in spite core inflation seems to be rising, is yet to see if the latest recovery "will prove durable." She said the FED has "considerable scope for stimulus if needed." A dovish tone from Yellen should not have came as a surprise, but it was, given the hawkish tone of FED's officers during the past week. The greenback was trading mixed ahead of the event, finding some limited support in weaker commodities' prices and better-than-expected US data, as the  Conference Board Consumer Confidence Index improved in March, up to 96.2 up from 94.0 in February.

Yellen sent the EUR/USD pair up to the 1.1300 region, moving past last week´s high, and indicating a strong upward potential for the upcoming sessions. A rate hike in the US is unlikely until at least 9-16, and the USD may show this by moving lower.. As for the technicals, the 4 hour chart shows that the indicators are entering overbought territory by the end of the US session, as the price remains pressuring the highs, all of which supports a continued advance towards the 1.1340 level, this month high, en route to 1.1375, the year high. Should the price extend beyond this last, the rally can extend up to 1.1460, a major static resistance level that contained the pair since early 2015.

Support levels: 1.1250 1.1191 1.1142

Resistance levels: 1.1342 1.1377 1.1421