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The carry unwind has come to a halt amid flat action in the European stocks, making it difficult for the EUR bulls to take it the EUR/USD pair above 1.13 levels.
Eyes EC forecasts ahead of Yellen testimony
The EUR traders await the European Commission economic forecasts. A weaker inflation forecasts could weigh over EUR, especially since the ECB has expressed readiness to act in March. Meanwhile, the action in the European stock markets would continue to influence the pair.
Ahead in the day, Yellen testimony could dominate the wires. Comments on whether the Fed will still be considering a rate hike at its March meeting is what markets would be interested in hearing.
EUR/USD Technical Levels
The immediate resistance is seen at 1.1338 (previous day’s high), above which the cross could target 1.14 levels. On the other hand, a break below 1.1253 (100% Fibo expansion of Dec low – Dec high – Jan low) would shift risk in favor of a drop to 1.1236 (38.2% of Mar low-Aug high)
