EURUSD fades bounce off 61.8% Fibonacci retracement of November-January upside as traders eye Congressional testimony of Federal Reserve Chairman Jerome Powell and US Treasury Secretary Janet Yellen. Given the sluggish MACD and the recent US dollar demand, the bears are likely to retake the controls should policymakers hesitate in accepting fears of reflation. In that case, the aforementioned key Fibonacci retracement and 200-day SMA, respectively around 1.1885 and 1.1850, will be in the spotlight before the monthly bottom surrounding 1.1835.
Meanwhile, a surprising optimism can trigger the quote’s recovery moves targeting a 50% Fibonacci retracement level of 1.1975. Though, any further upside will be tamed by a confluence of 21-day SMA and a three-week-old horizontal area near 1.1990. Also likely to tame the EURUSD bulls is the 1.2000 round-figure and the mid-February lows near 1.2025. Overall, EURUSD looks set for further losses but the key SMA can test the south run.