EUR/USD meets fresh supply, tests 1.0770 ahead of Yellen

The steady climb in EUR/USD lost steam once again ahead of 1.08 handle in early Europe, knocking-off the rate back to daily troughs amid mixed market sentiment.

The spot moved off-highs, although wavers in familiar range within a close proximity to fresh seven-week tops amid a phase of downside consolidation in the US dollar against most of its major rivals.

The latest leg down in EUR/USD is mainly in response to a pick-up in buying seen around the greenback across the board, as traders look to take profits off the table on their USD shorts after the recent sell-off, especially ahead of the all-important Trumpcare bill vote scheduled later in the NA session.

Meanwhile, focus remains on the Fed Chair Yellen’s speech alongside speeches from other Fed officials, which could provide fresh hints on the timing of the next rate hikes. Apart from the speeches, the US jobless claims and new home sales data will also hog some limelight.

EUR/USD Technical Levels   

Karen Jones, Analyst at Commerzbank, “EUR/USD’s near term outlook is neutral to positive: The cross has virtually reached a band of resistance offered by the 1.0829 February high, the 1.0851 October low, 1.0875 December high and 1.0886 200 day moving average. In this area it is likely to stall, however upside risks are growing. Dips should find support between the 1.0679 mid-February high and the 55 day moving average at 1.0651.”