EUR/USD catches fresh bid, nears 1.1450 ahead of US PPI, Yellen

After a brief phase of consolidation around 1.1415 region in the overnight trades, the EUR/USD pair broke to the upside in an attempt to regain 1.1450 barrier amid renewed USD weakness.

EUR/USD eyes on US-German 10-yr yield spread

The spot continues to remain underpinned by narrowing monetary policy between the Fed and ECB, in response to a dovish stance adopted  by the Fed officials’ lately, while Draghi & his company has shifted gear towards a hawkish narrative. This fact is evident from narrowing US-German 10-year yield differential, which has tumbled to the lowest since early-Nov.

However, the upward bias in the EUR/USD pair failed to garner strength on Yellen’s testimony in the last US session, as record high Wall Street stocks somewhat weighed negatively on the funding currency Euro.

Focus now shifts towards the German final CPI release due out shortly ahead of the European open, while US PPI and jobless claims hold more significance today, in absence of first-tier macro news from the Euroland. Also, a bevy of Fed speakers are lined up later today, including the Yellen’s testimony before the Senate.

EUR/USD Technical Levels              

According to Jim Langlands at FX Charts, “If the Euro remains heavy,  the initial support now lies nearby, at the 7 July/10 July/11 July lows of 1.1378/80, below which could then run towards 1.1345/50 and then to 1.1310/15. On the topside, the initial resistance will be seen at 1.1440 (minor) and again at 1.1485/90 ahead of 1.1500. Above here, although unlikely today, only minor hurdles exist to stop the Euro from heading to the May 2016 high of 1.1616.”