EUR/USD stuck around 1.1450, Yellen on sight

The demand for the single currency remains subdued on Wednesday, with EUR/USD so far parked in the mid-1.1400s while investors keep waiting for Yellen’s testimony due later in the session.

EUR/USD offered ahead of Yellen

Spot met fresh sellers after the sharp upside failed to extend further north of the 1.1490 area during overnight trade, levels last traded in May 2016.

It is worth mentioning that a wave of fresh buying interest boosted the pair to the vicinity of the psychological 1.1500 handle on Tuesday in response to dovish comments from FOMC’s Lael Brainard (permanent voter ), who suggested that the Federal Reserve should be more cautious in its tightening cycle in order to clinch its inflation goal.

Also collaborating with the upside, news citing a meeting between Donald Trump Jr. and a Russian lawyer (who is said to represent the Russian government) resuscitated the effervescence around the Russia-gate, impacting on the buck and dragging the US Dollar Index to levels close to YTD lows near 95.20.

In the meantime, EUR/USD managed to leave behind the tough resistance area around 1.1450, while activity from EUR futures markets points to a continuation of the uptrend, at least in the near term.

Looking ahead, Yellen’s testimony should put the pair’s advance to the test, followed by the speech by KC Fed E.George (2019 voter, hawkish) and the Fed’s beige Book.

EUR/USD levels to watch

At the moment, the pair is losing 0.14% at 1.1450 facing the immediate support at 1.1407 (10-day sma) followed by 1.1311 (low Jul.5) and finally 1.1301 (21-day sma). On the flip side, a breakout of 1.1489 (2017 high Jul.12) would open the door to 1.1500 (psychological handle) and then 1.1616 (2016 high May 3).