From yesterday: “EURUSD has traded in a tight 30 pip range between 1.1311/41 early into the European session. The currency pair looks as if it’s begging for direction, and with Greece proposals in the background, a Draghi speech and a Yellen testimony in front of senate scheduled for later today we will likely get that. On the price action front we’re fairly range bound between 1.1270/1410 on the daily picture and the 4-hourly charts are depicting a triangular setup that is ripe for a breakout. The direction it takes will likely be determined by comments from Yellen’s Senate testimony later today, watch out for a break of 1.1450 or of 1.1270 for acceleration in respective directions”.
EUR/USD again dipped briefly below 1.1300 to 1.1288 yesterday but bounced back to a session high of 1.1358 after a dovish testimony by Fed Chair Janet Yellen. Today, the pair edged up to 1.1388 and looks to test the 1.1400 level. Significant resistance in the near-term still lies at 1.1440 and only a move above this level could give scope for a broader intraday spike to 1.1500. A move back below 1.1350 could see the intraday bulls discouraged and the pair fade back towards 1.1300.