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FED's Bernanke Testimony next: Impact on the USD

FXstreet.com (Córdoba) - Expected to set the trading tone for the day, Bernanke will testify before the Congress at 14:00GMT, with investors looking for any hints of when the central bank plans to begin tapering its bond-buying programs. His prepared remarks will come out 90 minutes earlier at 12:30GMT.

"Once the speech is over, Bernanke will have to face a Q&A session, and things may turn quite interesting moreover if the text includes no clear data on next QE moves", says Valeria Bednarik, chief analyst at FXstreet.com.

"A dovish stance, delaying QE end towards the end of the year or further, will likely put the greenback under pressure, while a more hawkish talk and a certain date for the beginning of tapering, will likely see the dollar recovering across the board", Bednarik comments.

Ahead of the speech, EUR/USD trades quietly in a slim range just below the 1.3150 area, consolidating yesterday's gains. However, the pair needs to overcome the 1.3200/04 resistance are to pave the way towards next target 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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