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EUR/USD spikes on Bernanke remarks, US data

FXstreet.com (Córdoba) - The EUR/USD spiked to fresh daily highs at the beginning of the American session, following worse-than-expected US housing data and the release of Fed Bernanke's speech transcript.

Bernake says QE by no means on preset course

Bernanke testimony signals that asset purchases depend on economic and financial developments, and "they are by no means on a preset course". With no clear signs on tapering and fairly dovish comments, the USD weakened immediately after the publication, although Bernanke will face a Q&A session at 14:00GMT.

EUR/USD remains capped below 1.3175

EUR/USD jumped to a fresh weekly high of 1.3175 but stalled roughly at the same level it did it yesterday. At time of writing, EUR/USD is trading at the 1.3160 area, virtually unchanged since opening.

On the upside, if EUR/USD manages to overcome the 1.3200/04 resistance area, next resistance is seen at 1.3250. On the other hand, loss of the 1.3070 level (200-day SMA) could see the pair falling to the 1.2990 region.

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