EUR/USD remains capped by the 1.1380/90 zone

EUR/USD has barely moved over the last sessions as investors refrain from taking big positions after Fed Yellen speech and ahead of the Jun 14-15 FOMC meeting.

In the absence of first-tier data, EUR/USD has entered a phase of consolidation near 3-week highs, unable to break above the 1.1380/90 zone and with the downside contained by the 1.1340 area. At time of writing, EUR/USD is trading at 1.1345, virtually unchanged on the day.

On Monday, Fed Chair Yellen said that although Friday’s jobs report was concerning, they should not emphasize in one month results and the general picture of the labor market is largely positive. Yellen expects that further gradual increases in the federal funds rate will probably be appropriate.

EUR/USD levels to watch

On the upside, immediate resistances are seen at 1.1400 (psychological level), 1.1428 (May 12 high) and then 1.1446 (May 11 high). On the downside, supports are seen at 1.1314 (50-day SMA), 1.1245 (20-day SMA) and 1.1193 (100-day SMA).