Investors seem to have adopted a “wait and see” approach during Tuesday’s trading session with currency markets on standby ahead of Yellen’s congressional testimony on Wednesday and Thursday. With the economic calendar relatively light due to the lack of macroeconomic data, price action should dictate where most major pairs trade today.

Euro bulls flourish above 1.1300

The encouraging macro-fundamentals for the European economy and current relief from political risk in Europe continue to support the Euro with the EURUSD hovering near a yearly high at 1.1140 as of writing. Sentiment is turning increasingly bullish towards the Euro and such can be reflected on the EURUSD with buyers in firm control above the 1.1310 higher low. From a technical standpoint, there have been consistently higher highs and higher lows on the daily charts which fulfill the prerequisites of a bullish trend. Prices are trading above the daily 20 SMA while the MACD has also crossed to the upside. A breakout and daily close above 1.1450 should encourage a further appreciation higher towards 1.1160.

GBPUSD hovering above 1.2900

The British Pound loitered around a two-week low against the Dollar during early trading on Tuesday as soft consumption data and business survey’s prompted investors to re-evaluate the Bank of England’s ability to raise UK interest rates this year. Although the GBPUSD has edged slightly higher as of writing, this has nothing to do with a change of sentiment but profit taking. With the Brexit drama, the political risk at home and soft economic data weighing heavily on Sterling, further losses could be on the cards. From a technical standpoint, the GBPUSD is coming under increasing pressure on the daily charts with 1.3000 acting as a ceiling. A breakdown below 1.2850 should encourage a further decline lower towards the pivotal 1.2775 level.

USDCAD tumbles to a yearly low  

The USDCAD remains under intense selling pressure on the daily charts with 1.3000 acting as a very tough resistance. There have been consistently lower lows and lower highs while prices remain well below the daily 20 Simple Moving Average. Although the trajectory clearly points to the downside, investors should trade the pair with diligence ahead of the Bank of Canada interest rate decision on Wednesday. An interest rate increase by the BoC may inspire Canadian Dollar bulls with enough inspiration to send the USDCAD towards 1.2800. From a technical standpoint, sellers remain in control below 1.3000 with 1.2800 acting as the first major level of interest.

USDJPY sprints towards 114.50

A renewed appetite for risk has punished the safe-haven Yen with bullish investors exploiting the Yen’s weakness to propel the USDJPY towards 114.50. From a technical standpoint, the pair is bullish on the daily charts and the upside momentum may open a path towards 115.00. Investors may be looking for a decisive breakout and daily close above 114.50 or a technical correction towards 113.50 to attack prices higher.

Gold edges towards $1200

Gold remains noticeably pressured by the rising prospects of tighter global monetary policies. Although the Brexit developments, geopolitical tensions and political risk in Washington may support the metal in the longer term, short term bears remain in control with sellers eyeing $1200. From a technical standpoint, the yellow metal is vulnerable to heavy losses on the daily charts. The breakdown below $1214 may trigger a further decline towards $1200.