The euro continues to consolidate towards the lower end of its recent trading range against the greenback, ahead of a trading week defined by market moving risk events. The EURUSD pair currently trades just above the 1.2300 handle, with financial markets cautious ahead of new Federal Reserve Chair Jerome Powell’s first testimony before U.S senate, and the upcoming Italian elections. In the short-term, EURUSD traders look towards New Home Sales data from the United States today and the key 90.00 level on the U.S dollar index.
The EURUSD pair remains bearish while trading below the 1.2321 level, further declines towards 1.2992 and 1.2259 seem likely.
Should the EURUSD pair start to trade below the 1.2321 level, buyers are likely to test resistance around the 1.2351 and 1.2390 levels.
