EUR/USD: Minor-recovery remains capped by 1.1465, Yellen eyed

The pull back in the EUR/USD pair continues to find stiff resistance near 1.1465 region, as the bears retain control, despite the release of upbeat Eurozone industrial production data for the month of May.

EUR/USD eyes on Yellen’s testimony

The spot stalled its corrective slide, although remains better offered amid resurgent USD demand across the board, as markets resort to profit-taking on their USD shorts ahead of the Fed Chair Yellen’s testimony before the lawmakers scheduled later today,

The downside, however, remains supported by the daily pivot located near 1.1440 levels, in response to persisting weakness seen in Treasury yields, following dovish Fedspeaks.

Further, stronger-than expected Eurozone industrial production figures also provide fresh impetus to the EUR bulls, keeping the losses in EUR/USD limited. European Monetary Union Industrial Production w.d.a. (YoY) above expectations (3.6%) in May: Actual (4%)

All eyes now remain on the major market moving event for today, the Fed Chair Yellen’s testimony on the Semiannual Monetary Policy Report before the House Financial Services Committee, which is scheduled later in the American morning.

EUR/USD Technical Levels              

According to Jim Langlands at FX Charts, “The Euro has squeezed up to 1.1479 on Tuesday, taking out the descending trend resistance to make a new 14 month high, and further gains now seem possible with minor resistance only, to stop the Euro from heading to the May 2016 high of 1.1616.”

“On the downside, minor support now lies at 1.1445/55, below which we could then head back to 1.1400 and to the 7 July/10 July/session lows of 1.1378/80.  Below here looks unlikely today but further losses would run towards 1.1350/55, below which could see a return to 1.1320/30 and possibly to 1300/10,” Jim added.