EUR/USD stuck in the 1.2380-1240 range ahead of Fed’s Dudley speech

• The US dollar is struggling to find a clear direction on Wednesday.
• The US dollar weakness is keeping the EUR/USD in a tight 20-pip´s range. 
• Fed William Dudley´s speech on monetary policy and the economic outlook is slated at 12:30 GMT.

The euro bulls are keeping the EUR/USD pair in a tight 20-pip range between 1.2380 and the 1.2400 psychological level. 

Earlier in the day, the softer inflation data in the Eurozone brought the single currency down to 1.2340 testing Tuesday’s low. However, still in the European session the bulls came out of nowhere and managed to orchestrate a sharp reversal up moving the pair back to the 1.2400 level. 

James Bullard in a comment earlier said that the “Fed should stay flat with policy rate.” It is a rather dovish remark which adds pressure to the greenback which is struggling to find a clear direction in midweek's trading. 

The US dollar did find some footing on Tuesday’s early European session’s trading but the enthusiasm didn’t last much more than 24 hours as the buck is now stuck in a range between 89.50 and 89.60 according to the US Dollar Index. 

Coming up next on Wednesday´s calendar is Fed William Dudley´s speech on monetary policy and the economic outlook slated at 12:30 GMT. Hawkish comments, like he provided on Tuesday, can somewhat support the USD. 

The general US stock market sentiment remains upbeat with blockbuster earnings in Wall Street and investors putting under the rug risks associated with the geopolitical picture. The safe-haven gold remains surprisingly well-bid in a risk-on environment and is trading above $1,350 a troy ounce. 

EUR/USD 4-hour chart

Resistance is seen in the 1.2400-1.2414 band with both marking previous swing highs; followed by 1.2477 swing high. To the downside traders will look at the 1.2341 and 1.2336 swing lows, followed by 1.23 swing low.