EUR/USD up move faltered at 1.1400

The single currency has now trimmed part of the initial drop to the vicinity of 1.1380 vs the greenback, with EUR/USD currently testing the 1.1400 neighbourhood.

EUR/USD rangebound ahead of Yellen

The sudden drop in the greenback has allowed spot to reclaim the 1.1400 handle on Tuesday after a negative start, posting at the same time gains for the first time after two consecutive daily pullbacks.

The pair, in the meantime, is prolonging its consolidative theme in the upper end of the recent range, although EUR-bulls still remain unable to break above the critical 1.1440/50 band.

The current sideline pattern is reinforced by the recent performance of EUR futures markets, while options markets leave the door open for a potential decline in the near term.

In the data space, Italian industrial production expanded more than expected in May, up 0.7% MoM and 2.8% over the last twelve months. Across the pond, the NFIB index is due followed by JOLTs Job Openings and speeches by FOMC’s L.Brainard (permanent voter, centrist) and Minneapolis Fed N.Kashkari (voter, dovish).

EUR/USD levels to watch

At the moment, the pair is losing 0.04% at 1.1394 facing the immediate support at 1.1313 (low Jul.5) followed by 1.1290 (low Jun.28) and finally 1.1287 (21-day sma). On the flip side, a breakout of 1.1400 (high Jul.11) would open the door to 1.1448 (2017 high Jun.30) and then 1.1466 (high Apr.12 2016).