EUR/USD recedes from tops near 1.1750 ahead of Powell

• The pair clinches tops near 1.1750 and retreats.
• DXY is testing once again the critical 94.40 area.
• Fed’s Powell will testify before the Senate Banking Committee later.

After advancing to fresh tops in the proximity of  the 1.1750 area, EUR/USD seems to have met sellers and is now returning to the 1.1725/20 band.

EUR/USD now looks to Powell

The pair’s buying bias stays well and sound so far today, although spot met a strong resistance area in the mid-1.1700s. The 55-day sma, the base of the daily cloud and a retracement of the April-May descent reinforce this hurdle.

On the other hand, the buck is staging a rebound after bottoming out in the 94.30 area during early trade amidst some retracement in yields of the US 10-year note to lows near 2.85%.

Events-wise today, Powell’s semi-annual testimony before the Senate Banking Committee should grab all the attention seconded by US Industrial Production figures, the NAHB index and TIC Flows.

EUR/USD levels to watch

At the moment, the pair is gaining 0.13% at 1.1725 and a break above 1.1745 (high Jul.17) would target 1.1792 (high Jul.9) en route to 1.1853 (high Jun.15). On the other hand, the immediate support aligns at 1.1663 (21-day sma) seconded by 1.1615 (low Jul.13) and finally 1.1527 (low Jun.29).