EUR/USD comes down to test daily lows near 1.1450

After climbing as high as 1.1490 earlier in the session, EUR/USD has now come under some selling pressure and is visiting daily lows in the 1.11455/50 band.

EUR/USD focus on Yellen

The re-emergence of a strong selling bias around the buck helped spot to finally surpass the critical 1.1450 area on Tuesday and even clinch the psychological handle at 1.1500 the figure.

Dovish appreciations from FOMC’s permanent voter Lael Brainard on Tuesday encouraged USD-bulls to quickly return to the markets after suggesting the Federal Reserve should be more cautious in its tightening cycle.

In the same line, 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

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 0.17% at 1.1446 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).