EUR/USD trims losses, around 1.1215/20 ahead of Fedspeak

The common currency has recovered the ground lost to the buck earlier in the session, now pushing EUR/USD back towards the 1.1215/20 band.

EUR/USD now looks to Yellen, Fedspeak, DB

Spot remains locked within a narrow range for the time being, finding decent support in the 1.1180 area after ECB’s M.Draghi reiterated the need for structural reforms in order to spur growth in the region at today’s First ECB Annual Research Conference in Frankfurt (nothing new here).

Ahead in the session, the Exchange of Views by President Draghi on ‘Current developments in the euro area’ in Berlin will bring back the focus on EUR, while Yellen’s testimony before the House Panel will take the bulk of the markets’ attention later in the NA session.

Further events include August’s Durable Goods Orders and speeches by St. Louis Fed J.Bullard (voter, neutral), Chicago Fed C.Evans (voter 2017, dovish) and Cleveland Fed L.Mester (voter, hawkish and one of the triple dissenters at the last FOMC meeting).

Adding to potential choppiness around the pair, Deutsche Bank remains in the spotlight following news that the German government could be elaborating a rescue package.

EUR/USD levels to watch

The pair is now losing 0.01% at 1.1216 and a breakdown of 1.1188 (low Sep.27) would open the door to 1.1158 (200-day sma) en route to 1.1133 (2014-2016 support line). On the flip side, the next hurdle aligns at 1.1267 (resistance line off 2016 high) ahead of 1.1329 (high Sep.8) and finally 1.1367 (high Aug.18).