EUR/USD challenges highs near 1.0630, Yellen eyed

EUR/USD is now recovering the smile, trading in the upper bound of the daily range near the 1.0630 area.

EUR/USD focus on Yellen

After a brief test of the 1.0600 neighbourhood, dip buyers seem to have showed up and are now pushing the pair back near daily highs around 1.0630.

The bearish note around the buck remains the exclusive driver for today’s price action, all ahead of the upcoming semi-annual Humphrey Hawkins Testimony by Chair J.Yellen before the Senate Banking Committee. Market expectations point to a USD-supportive message from Yellen today, which could in turn put the ongoing pair’s upside to the test.

On the data front, German advanced GDP figures missed expectations for the fourth quarter, while the ZEW Survey came in below estimates in all of its components. Further data saw EMU’s Industrial Production expanding 2.0% on a year to December, bettering forecasts.

EUR/USD levels to watch

At the moment the pair is up 0.28% at 1.0629 and a breakout of 1.0670 (high Feb.10) would target 1.0704 (20-day sma) en route to 1.0752 (100-day sma). On the flip side, the immediate support lines up at 1.0590 (low Feb.13) followed by 1.0587 (low Jan.19) and finally 1.0452 (low Jan.11).