EUR/USD advances to 3-week highs amid Yellen’s remarks

EUR/USD initially dropped to fresh daily lows only to quickly bounce to fresh highs as investors assess Federal Reserve Chair Yellen speech in Philadelphia.

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 slid to a low of 1.1326 before jumping toward a fresh 3-week high of 1.1392. It was last trading around 1.1375, recording a 0.2% gain on the day.

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 1.1190 (100-day SMA).