EUR/USD in a tight range around 1.1400

EUR/USD in a tight range around 1.1400

11 July 2017, 14:41
Roman Vashchilin
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The single currency alternates gains with losses vs. the buck on Tuesday, taking EUR/USD to meander within a narrow range around 1.1400 the figure.

EUR/USD cautious ahead of Yellen

The pair stays almost unchanged around the 1.1400 handle today against the backdrop of an empty docket in Euroland and rising wariness on the upcoming testimonies by Chief J.Yellen on Wednesday and Thursday.

In the meantime, spot is prolonging its rangebound theme in the upper end of the recent range, although EUR-bulls still remain unable to break above the critical 1.1440/50 band. A breakout of this key area should allow for extra gains, with the psychological 1.1500 handle acting as the next significant hurdle.

The current sideline pattern is reinforced by the recent performance of EUR futures markets, while options markets leave the door open for a potential decline in the near term.

Furthermore, EUR seems to have found some extra support in recent comments by ECB's B.Coeure, who argued in favour of the benefits of the loose monetary policy implemented by the central bank.

EUR/USD levels to watch

At the moment, the pair is up 0.04% at 1.1404 and a breakout of 1.1448 (2017 high Jun.30) would target 1.1466 (high Apr.12 2016) en route to the psychological handle at 1.1500. On the downside, the immediate support stays at 1.1313 (low Jul.5) followed by 1.1290 (low Jun.28) and finally 1.1287 (21-day sma).

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