EUR/USD recedes from tops near 1.1750 ahead of Powell

The pair clinches tops near 1.1750 and retreats.
DXY is testing once again the critical 94.40 area.
Fed’s Powell will testify before the Senate Banking Committee later.

Pablo Piovano FXStreet

After advancing to fresh tops in the proximity of the 1.1750 area, EUR/USD seems to have met sellers and is now returning to the 1.1725/20 band.

EUR/USD now looks to Powell

The pair’s buying bias stays well and sound so far today, although spot met a strong resistance area in the mid-1.1700s. The 55-day sma, the base of the daily cloud and a retracement of the April-May descent reinforce this hurdle.

On the other hand, the buck is staging a rebound after bottoming out in the 94.30 area during early trade amidst some retracement in yields of the US 10-year note to lows near 2.85%.

Events-wise today, Powell’s semi-annual testimony before the Senate Banking Committee should grab all the attention seconded by US Industrial Production figures, the NAHB index and TIC Flows.

EUR/USD levels to watch

At the moment, the pair is gaining 0.13% at 1.1725 and a break above 1.1745 (high Jul.17) would target 1.1792 (high Jul.9) en route to 1.1853 (high Jun.15). On the other hand, the immediate support aligns at 1.1663 (21-day sma) seconded by 1.1615 (low Jul.13) and finally 1.1527 (low Jun.29).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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