EUR/USD recovers lost ground, turns neutral around 1.1200

Having dropped to a five-day low level near 1.1180 region, the EUR/USD pair has managed to recover majority of its lost ground and is now trading in neutral territory around 1.1210 area.

In absence of any economic releases / fundamental developments, the current recovery could be attributed to a short-covering ahead of the Fed Chair Janet Yellen's testimony before the Committee on Financial Services and speech from ECB President Mario Draghi on current developments in the Euro-area.

Comments from two major central bank chiefs would certainly grab market attention and provide fresh clues over the central bank's respective economic and monetary policy outlook, eventually infuse volatility around the EUR/USD major. 

On the economic data front, US durable goods orders data would be the key highlight during early NA trading session on Wednesday. Also in focus would be speeches from various FOMC members, including Cleveland Fed Loretta Mester one of the three dissenters at the latest FOMC monetary policy meeting.

Technical levels to watch

Valeria Bednarik, Chief Analyst at FXStreet, notes, "the 4 hours chart shows that the price is struggling to surpass its moving averages that anyway remain all together and with limited upward strength, indicating the absence of a clear dominant trend. Technical indicators in the same time frame have turned modestly higher, but remain below their mid-lines, while the price seems unable to enter positive territory daily basis, limiting chances of a stronger advance."

"A daily descendant trend line, coming from 1.1615, this year high, has been containing rallies ever since mid August, and today stands around 1.1260, while multiple intraday highs and lows are located in the 1.1280 region. Should the price advance beyond this last, the rally can extend up to 1.1335, en route to 1.1365."

"Renewed selling pressure below 1.1190, should see the decline extending down to 1.1160, while below this last, 1.1120 comes next."