EUR/USD pulls back from highs amid Draghi, Yellen comments

EUR/USD retreated from daily highs and dropped toward the 1.1200 area amid comments from both ECB President Mario Draghi and Fed's Chair Janet Yellen, who were speaking at different locations on different subjets.

Draghi said there are no signs of overheating in the euro bloc or in the German economy in particular. He now expects the ECB measures to develop their full impact, while he reiterated that other policies must contribute more decisively and remain a pre-condition for higher interest rates.

Fed Chair Janet Yellen was testifying on banking regulations to the House of Financial Services but she did not discuss monetary policy or the outlook in the economy in text.

Nevertheless, EUR/USD lost altitude and dropped to a session low of 1.1205 in recent dealings. It was last trading around 1.1210, virtually unchanged on the day.

EUR/USD technical levels

In terms of technical levels, immediate  resistances could be faced at 1.1258 (Sep 27 high), 1.1283 (Sep 15 high), 1.1326 (Sep 8 high) and 1.1365 (Aug 18 high). On the other hand, supports are seen at 1.1185 (100-day SMA/50-day SMA), 1.1155 (200-day SMA) and 1.1122 (Aug 31 & Sep 21 low).