Forex - EUR/USD pushes higher ahead of Bernanke

The euro pushed higher against the dollar on Tuesday as investors positioned ahead of testimony to Congress by Federal Reserve Chairman Ben Bernanke on Wednesday.

EUR/USD hit 1.3096 during late Asian trade, the session high; the pair subsequently consolidated at 1.3082, rising 0.16%.

The pair was likely to find support at 1.2998, Friday’s low and resistance at 1.3150, the high of June 25.

Market participants were looking to Bernanke's testimony on monetary policy amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.

The dollar fell sharply last week after Bernanke said the U.S. economy still needed monetary stimulus.

Data on Monday showing that U.S. retail sales rose less-than-expected June fuelled fears over a slowdown in the economic recovery.

The Commerce Department said U.S. retail sales rose 0.4% in June, slowing from a 0.5% increase in May and undershooting expectations for a 0.8% increase. 

However, a separate report showed that the Empire State manufacturing index rose to a five-month high of 9.5 in July from 7.8 in June. Economists had forecast a reading of 5.0.  

The euro was steady against the pound, with EUR/GBP edging up 0.01% to 0.8648 and was slightly higher against the yen, with EUR/JPYeasing up 0.13% to 130.59.

The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday and the euro zone was to release official data on consumer price inflation.

The U.S. was also to release official data on consumer price inflation and a report on industrial production.