EUR/USD plummets to 1.1240 on Yellen

A bout of buying interest in the greenback has dragged EUR/USD to fresh lows in the 1.1240/50 band following the speech by Chair J.Yellen.

EUR/USD tumbles to lows on upbeat Yellen

Spot met sudden selling pressure after Chief J.Yellen said that a case for higher rates has strengthened in recent months, adding that the Committee considers gradual increases of rates as appropriate.

Yellen stressed that the Fed is not considering revising higher its targets for inflation and nominal GDP, while she sees consumer prices rising towards 2% in the next fex years.

EUR/USD levels to watch

The pair is now losing 0.08% at 1.1271 facing the next support at 1.1242 (low Aug.24) followed by 1.1223 (2014-2016 support line) and finally 1.1179 (38.2% Fibo of May-June drop). On the upside, a breakout of 1.1357 (high Aug.23) would aim for 1.1434 (high Jun.24) and finally 1.1466 (high Apr.12).