EUR/USD tumbles to sub-1.1700 area ahead of Powell

• The pair faded the initial spike to 1.1740/50 and returns to 1.1690.
• US Industrial Production expanded more than expected in June.
• Fed’s Powell will testify before the Senate Banking Committee later.

After clinching fresh tops in the 1.1740/50 band in early trade, EUR/USD met a wave of selling orders and has now retreated to the 1.1700/1.1690 band.

EUR/USD weaker ahead of Powell

The pair gave away initial gains beyond 1.1700 the figure and is now remain under pressure in light of the upcoming semi-annual testimony by Fed’s J.Powell before the Senate Banking Committee.

USD gathered extra traction after US June’s Industrial and Manufacturing Production expanded beyond consensus at a monthly 0.6% and 0.8%, respectively. On the not-so-bright-side, Capacity Utilization Rate came in at 78.0%. missing estimates albeit higher than May’s 77.7%.

Looking ahead, investors expect Powell to deliver a message in line with the statement published at the June meeting, although attention has also shifted to the yield curve and the continuation of the gradual path when comes to raising rates.

EUR/USD levels to watch

At the moment, the pair is losing 0.12% at 1.1696 facing the next support at 1.1663 (21-day sma) seconded by 1.1615 (low Jul.13) and finally 1.1527 (low Jun.29). On the upside, a break above 1.1745 (high Jul.17) would target 1.1792 (high Jul.9) en route to 1.1853 (high Jun.15).