EUR/USD on its way to 1.3700?

FXStreet (Edinburgh) - The shared currency is picking up pace again, lifting the EUR/USD to post fresh session highs beyond 1.3680.

EUR/USD climbing on better risk sentiment

The risk-on trade is gradually gathering steam in Euroland this morning, pushing spot to the key area near 1.3700 the figure with Chairwoman Yellen’s testimony taking centre stage later. In the opinion of Sebastien Galy, Strategist at Societe Generale, “Ms Yellen will likely emphasise that Fed policy does not hinge on one particular economic indicator (unemployment), that the recovery continues, albeit unevenly, that inflationary pressures are very modest and that the current path of gradually slowing the pace of bond-buying is appropriate. Any fireworks come later from the Q&A”.

EUR/USD levels to watch

As of writing the pair is advancing 0.25% at 1.3681 with the next hurdle at 1.3689 (high Jan.28) followed by 1.3716 (high Jan.27) and finally 1.3721 (daily cloud top). On the downside, a dip below 1.3666 (high Jan.30) would open the door to 1.3652 (high Feb.10) and then 1.3609 (100-d MA).