EUR/USD rebounds from 5-DMA, Eyes 1.07 handle

EUR/USD found takers around 5-DMA level of 1.0657 following Yellen speech earlier today and is now marching towards 1.07 handle.

Yellen offers support

Yellen stressed the necessity to be gradual with rate hikes and reiterated that the Fed is not behind the curve. She stressed the uncertainty surrounding the fiscal policy. Overall, the comments were slightly dovish.

Thus, the offered tone around the US dollar gathered pace. The focus now is on the Trump inauguration ceremony.

EUR/USD Technical Levels

The pair rebounded from the previous day’s low of 1.0590 (50-DMA yesterday) and closed above the 5-DMA despite Draghi maintaining the dovish tone.

The spot was last seen trading closer to 1.0690. A break above 1.0707 (38.2% fib retracement) would open doors for 1.0768 (Dec 7 high) and 1.08 (zero figure) levels. On the other hand, a breakdown of support at 1.0658 (5-DMA) could yield a re-test of 1.0625 (10-DMA) and 1.0590 (50-DMA).