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The EUR/USD has not seen a weekly close below this metric since November. The 144-day moving average seems to come in around this point and has provided a decent buy-on-the-dips level for the euro bulls.
The 1.3833 level remains the key area to breach if we are to see the trend move into the next phase and tackle the significant 1.40. For now, traders will be looking for a move through the more near-term barrier that is 1.3740 (a high from 24 January), as well as the trend-line resistance from the May 2011 highs.
The euro has now gained against the dollar for the past five trading sessions, with support now coming from the 100-day moving average. Intraday resistance of 1.3685 is standing in the way of further gains; the pair is trading in a range with 1.3625 providing a support zone.
A fall below this, which may be triggered by Ms Yellen’s first testimony speech later this afternoon, could see a retrace towards 1.3585.