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EUR/USD: USD bulls dominate on Yellen, drops further to 1.1165

FXStreet (Mumbai) - The EUR/USD pair keeps falling and now tests lows in the mid-Asian trades, extending its correction from near 1.13 barrier, as the Fed Chair Yellen talked up 2015 rate hike which triggered a fresh USD rally.

EUR/USD pressured below 1.1200

The EUR/USD pair trades -0.55% lower at 1.1170, hovering close to fresh session lows struck at 1.1160 in early moves. The main currency pair opened gap down and surrendered the 1.12 barrier as the US dollar was bolstered after the Fed Chairwoman Yellen reiterated in her speech that rate hike will happen later this year.

EUR/USD continues to struggle near the lows, meeting fresh supply on every attempt to fill in the bearish gap as the buck remains in power across the board.

On Thursday, the shared currency extended higher after the greenback was heavily sold-off amid risk-aversion and weaker US durable goods data. The corporate spending on the non-defence capital goods other than aircraft, edged 0.2% lower in August.

Meanwhile, markets now await German Bundesbank President Weidmann’s speech ahead of the crucial Q2 GDP data from the US due later tonight.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1232 (Today’s High), above which gains could be extended to 1.1296 (Sept 24 High) levels. On the flip side, support is seen at 1.1120 (Sept 7 Low) below which it could extend losses to 1.1103 (Sept 23 Low) levels.

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