EUR/USD sidelined above 1.1700, Fed’s Powell on sight

• The pair manages to keep the trade above the 1.1700 handle.
• The greenback extends the negative mood, around 94.50.
• Chief J.Powell’s semi-annual testimony will be the salient event.

The bid tone around the shared currency remains well and sound so far this week, although EUR/USD is trading in a cautious stance ahead of key events across the pond.

EUR/USD looks to Powell

Spot is advancing for the third session in a row on Tuesday, looking to consolidate the breakout of the 1.1700 milestone and flirting at the same time with the key resistance area in the base of the cloud.

The persistent selling bias in the greenback has prompted the US Dollar Index to recede further from tops beyond 95.00 the figure seen last week, although it seems to have found some strong contention in the mid-94.00s for the time being.

Later in the day, the pair should be under pressure, as Fed’s J.Powell will testify before the Senate Banking Committee. In this regard, market participants will look for comments on protectionism and the yield curve while it is expected that Powell confirms the gradual tightening.

Further US data will cover Industrial Production, the NAHB index and TIC Flows.

EUR/USD levels to watch

At the moment, the pair is gaining 0.06% at 1.1717 and a break above 1.1725 (high Jul.16) would target 1.1730 (55-day sma) en route to 1.1792 (high Jul.9). 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).