After the expected patient drop during the recent Federal Open Market Committee (FOMC) statement and subsequent speech of Federal Reserve Chair Janet Yellen, dollar plunged to reach the $1.1 level, as Yellen hinted that leaving patient from statement does not mean the Fed is impatient to raise rates. This motivated traders to close their long positions, but we can see now the overall trend getting back to its previous direction. Euro is still being undermined by quantitative easing, while dollar enjoys better condition of economy, providing feed to dollar-bulls on the market. Thus the EUR/USD corrected back, close to 2003 lows and we can expect support levels from our previous articles to be tested. First at $1.0588 and if euro drops further, another at 1.0470 or $1.0328 level.
