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Forex - EUR/USD rebounds ahead of Bernanke testimony

Published 02/24/2010, 02:37 AM
EUR/USD
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Investing.com - The euro rebounded slightly against the U.S. dollar on Wednesday, ahead of Federal Reserve Chairman Ben Bernanke's testimony before Congress and the release of data on new home sales in the United States. 

EUR/USD consolidated around 1.3541 shortly before the start of European trading, gaining 0.25%, after hitting a 2-day low late Tuesday at 1.3496. 

The pair was likely to find resistance at 1.3839, the high of Feb. 9, and support at 1.3445, Friday's low and a 9-month low. 

The single European currency also rebounded against the yen, with EUR/JPY strengthening 0.36% to hit 122.31. 

Later Wednesday, Bernanke was due to appear before the financial committee of the House of Representatives. The Fed chief is expected shed light on the central bank's sudden decision on Friday to hike an emergency bank-lending rate, which triggered speculation on monetary tightening. 

Bernanke is also set to appear at the Senate banking panel on Thursday. 

Meanwhile, the U.S. Census Bureau later in the day will release data on the number of new home sales in January, a key measure of the strength of the housing market.

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