The overnight recovery in the EUR/USD pair lost steam at 1.1320, and the prices slipped back below 1.13 handle, despite rising demand for safe-havens amid wide-spread risk-aversion. EUR/USD: USD recovers losses Currently, EUR/USD trades modestly flat at 1.1286, gradually extending to the downside in a bid to test daily lows struck at 1.1274. The main currency pair wiped-out gains and turned negative during the mid-Asian trades as the US dollar attempted minor-recovery from multi-month lows against its major competitors. The US dollar index recovers from 95.54 fresh four-month lows and now trades at 95.80, almost unchanged on the day. Earlier this session, EUR/USD rallied nearly 60-pips to hit fresh session highs at 1.1320 on the back of renewed USD sell-off after the markets did not buy into the optimistic outlook portrayed by Yellen in her testimony before the Congress yesterday, as global headwinds (particularly China), sluggish US economic fundamentals and USD appreciation continue to weigh on the Fed’s rate hike prospects. In absence of relevant macro data during the European session, focus now shifts towards the NY session, with Yellen’s testimony before the Senate and the weekly jobless claims closely eyed. EUR/USD Technical Levels In terms of technicals, the pair finds the immediate resistance at 1.1320/44 (daily high/ daily R1). A break beyond the last, doors will open for a test of 1.1400 (round number). On the flip side, the immediate support is placed at 1.1265/62 (1h 20 & 50-SMA) below which at 1.1214/00 (1h 100-SMA/ psychological levels) could be tested. For more information, read our latest forex news.