After side trend in which EURUSD moved for a few days (just above 1.1160 level), finally new upward wave occurred. Yesterday first resistance at 1.1200 was broken and a direct cause of larger volatility was yesterday’s public speech of Janet Yellen. Chair of the FED indicated anxiety of the low inflation and she said that Federal Reserve has tools to fight with this problem. This could mean a significant extension of the period of low interest rates in the US.
EURUSD sharply moved up and today price is testing 1.1330 (which is March’s high). Right now it is likely that price will reach 1.1380 level which is next resistance. After successful breakout of that level price would be at 5-month high. It has to be noted that at the level 1.1490 there is an upper limit of consolidation, in which EURUSD moves over a year.
