The US dollar managed to strengthen its position against the European currency after the speech of Fed Chairman Janet Yellen, however, today's Asian session has undergone a steep correction.

The speech of the Esther George, Federal Reserve President of the Kansas City, has cooled down investors sentiment who are expecting a further increase in interest rates of the Fed.

Esther said that there is a need to reduce the balance, which should begin in the near future,

since the current position of the Fed can result in financial imbalances.

Also, in her opinion, it is important that the Fed allows long-term interest rates to grow since the committee does not have the capacity to lower rates, if necessary. According to the President of the Federal Reserve Bank of Kansas City, the cycle of raising interest rates has already started.

Today, traders attention is focused on the speech of Janet Yellen who is already in front of the bank committee of the US Senate. If the Fed chairman sheds light on the new terms in raising interest rates, this will lead to a further increase of the US dollar. Let me remind you that, according to the Fed's plans, there is at least one more interest rate hike planned this year but there are a number of constraints. The chief of which is the recent slowdown in the inflation rate.

To date, the probability of another rate hike in 2017 is estimated at about 52% against the previous 59% on Tuesday, according to the CME Group.

As for the technical picture of the EURUSD pair, much will depend on the 1.1396 level and another decline would trigger several buyers to cancel stop orders which will collapse the trading instrument that is already in the range of new weekly support at 1.1350 and 1.1295.

In the case of a repeated test of weekly resistance levels at 1.1470 and 1.1500 area, a breakout may occur that could lead to the formation of a new upward wave with an increase of the highs at 1.1560 and 1.1630.

Today, the exports data from China was published during the Asian session, which has increased significantly in June this year. According to the official data from the Customs Administration of China, exports rose by 11.3% in June compared to the same period in the previous year, after rising 8.7% in May. The annual import growth in June was 17.2% following an increase of 14.8% in May. Economists expected imports to grow by 12.4% compared to the same period last year. The positive balance of foreign trade in China climbed to 42.77 billion US dollars.