The Euro closed the session 0.40% down versus the USD, just above the support level of 1.1660. The common currency was able to temporarily break the 1.17 resistance level, reaching a new weekly high at 1.1740 but then markets turned their attention to FED Chairman Testimony at the Senate.
Jerome Powell delivered an upbeat assessment of the US economy, signaling that gradual rate rises are the best way “for now” given the “encouraging” inflation numbers. USD dollar rallied following a spike in US 2YR yields, and EURUSD dropped to a new weekly low of 1.1648, from where it rebounded to close at 1.1661.
From a technical perspective, the current 1.1660 could provide initial support, with further demand around 1.16 while the 55-day moving average should provide resistance around 1.1729