The euro fell 0.2% to $1.2228 this morning ahead of Ben Bernanke's semi-annual monetary policy report to Congress, scheduled for Tuesday and Wednesday this week.
Investors are not expecting the Fed chairman to give more information outside of the minutes released from the June meeting. US economic data has been mixed lately, which might lead to the FOMC keeping their options open until September. However, Mr Bernanke has indicated the Fed is willing to act if the economic situation gets worse or the eurozone crisis intensifies yet again.
Technically, EUR/USD was back above the $1.22 level of support, although still in bearish territory with the moving average convergence divergence (MACD) indicator below the signal line. If the common currency is able to sustain a break below the $1.22 level, the next level of support only comes in at the $1.19 level.
The eurozone's final CPI reading for June is out at 10am (London time), and is expected to come in at 2.4% on a year-on-year basis. If this data beats expectations, we could see some short-term euro strength.