EUR/USD: consolidates on Fed speak below 1.12 handle

EUR/USD is consolidating the strong supply of last week's Fed speak, starting out in a quiet Asia sub the 1.12 handle.

Economic wrap for the US: Yellen getting hawkish? - Westpac

Yellen and Fischer set the bulls off on hawkish rhetoric and outright suggestions that September was on the cards for the next Fed rate hike, and first one since December 2015. 

"The federal funds rate has strengthened in recent months," were Yellen's opening remarks at the Jackson Hole Symposium where she also explained how data and the economy had improved in recent months. It wasn't until Fischer spoke on CNBC that markets really reacted due to his September comments. At the same time, the euro can feel the pinch next month withthe ECB in play as well. 

Coeure hints ECB may need to dive deeper into unorthodox policy

Meanwhile, however the GDP estimates for Q2 were not an improvement and much will now depend on the next few weeks until the next FOMC at the end of September. We will have the nonfarm payrolls at the end of this week and this will be a key event. 

US Q2 mixed GDP estimates - ANZ

EUR/USD levels

Technically,  the daily chart shows that the bearish potential has increased strongly, according to Valeria Bednarik, chief analyst at FXStreet who explained that the indicators heading south almost vertically and ready to enter in negative territory. "Furthermore, the week closed with the price below the 20 and 100 DMAs, with the 200 DMA around 1.1160, the immediate support. In the 4 hours chart, the price failed to establish above a now bearish 20 SMA, whilst the technical indicators hold near oversold readings, having posted shallow bounces at the end of the day, maintaining the risk towards the downside."