Up and down...Back up.
The dollar is recovering as well.The EURUSD is trading at 1.1286. The pair broke above the 61.8% of the move down from the August 2015 high at 1.1256. That level will be eyed as support. The USDJPY has been flat-lining for a while now. The 115.55-83 will remain as topside resistance (and add 116.00 as well).
Tomorrow will be a key test for the market with the Yellen testimony. Global concerns, falling oil prices, debt problems perhaps. The market will be looking for clues for tightening bias. The next meeting is not until March 15-16 which is far enough out to keep the chair vague, but "monitoring the global developments" may be balanced by "encouraged by the continued strong labor and pick up in wages" and the idea that the Fed will look to gradually move to more normal rates. The market may think March is off the table, but I don't think the Fed is going to let on now with over a month to go - or any time soon.
