* Euro down 0.2 percent at $1.4184
* Dollar steadies; more Bernanke testimony
* Sterling pares some losses after BoE minutes
* Euro zone May industrial orders fall 0.2 percent m/m
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By Tamawa Desai
LONDON, July 22 (Reuters) - The euro was pressured against the dollar on Wednesday when a recent rally in equity prices ran out of steam, dampening risk-taking sentiment.
The dollar held steady, recouping earlier losses as U.S. Treasury yields tumbled after Federal Reserve Chairman Ben Bernanke said U.S. interest rates would stay low for some time.
The FTSEurofirst 300 index of top European shares was down 0.5 percent, snapping a seven-day winning run. U.S. stock futures indexes were also lower, pointing to a weaker open on Wall Street.
By 0924 GMT, the euro was down 0.2 percent at $1.4184 after hitting a seven-week high on Tuesday at $1.4278, close to its peak for the year.
Traders reported hefty options activity in euro/dollar at $1.4200, set to expire later in the day. A holder of a digital option will get payout if spot is above $1.4200 at expiry, while other expiries at $1.4200 are thought to total 1 billion euros, market participants say.
Data showed euro zone industrial orders data unexpectedly fell 0.2 percent in May, compared with forecasts for a 1.9 percent rise month-on-month, but reaction was limited.
"It looks not really consistent with what we had seen for the euro area," said Juergen Michels, economist at Citigroup, adding he would not be surprised if the figures were substantially revised in due course.
Against the yen, the euro fell 0.5 percent from U.S. late trade on Tuesday to 132.55 yen.
The dollar index, a gauge of its performance against six major currencies, was flat at 78.960 after touching 78.591 on Tuesday, its lowest since June 3.
STERLING OFF LOWS AFTER BOE MINUTES
Sterling pared some losses after minutes from the Bank of England's latest policy meeting showed a unanimous decision to maintain the bank's 125 billion pound asset-buying total and keep interest rates at 0.5 percent.
The pound was at $1.6371 after falling to around $1.6312, although it was still down 0.4 percent on the day.
Higher risk currencies such as the Australian and New Zealand dollars edged down after rising in recent sessions.
The Australian dollar fell 0.7 percent to $0.8125 after hitting a five-week high of $0.8193 on Tuesday. The New Zealand dollar slipped 0.3 percent to $0.6535 after rising to $0.6610 on Tuesday.
"Levels look quite stretched for these big gainers," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ.
Meanwhile, traders will keep an eye on the second day of Bernanke's congressional testimony.
"Bernanke was trying to improve policy credibility in the market and anchor inflation expectations," said BTM-UFJ's Hardman. "The dollar has been broadly stable and that is a sign that Bernanke's message has come across well," he said.
The dollar eased 0.2 percent to 93.44 yen after shedding about 0.5 percent on Tuesday.
Bernanke will repeat his testimony before the Senate Banking Committee at 1400 GMT, and subsequently take questions. (Additional reporting by Jamie McGeever; Editing by Ruth Pitchford)