EUR/USD: 1.1800 – a tough nut to crack? Eyes on US tax vote

DXY catches a fresh bid on White House headlines.
Risk-recovery gathers pace in Asia.
All eyes on the US tax reform vote.

The EUR/USD pair traded weaker below 1.18 handle in the Asian trades, as the US dollar remained broadly supported ahead of the key vote on the US tax reform plan due later on Thursday.

EUR/USD trades below 100-DMA at 1.1796

The spot extended its sharp reversal from four-week tops of 1.1860 and went on to hit daily lows at 1.1769 in early trades, now consolidating the downside amid a pick-up in buying interest seen around the US dollar across its main peers, in response to the comments from the White House reporters, citing that the GOP leaders are confident they have the votes to pass the tax bill today.

More so, yesterday’s uptick seen in the US core CPI figures also kept the sentiment around the US dollar somewhat buoyed, while a recovery in risk sentiment on the back of the rebound in the global equities and Treasury yields further added to the weight on the funding currency Euro.

Later today, the pair will get influenced by the broader market sentiment and USD price-action ahead of the US jobless claims, industrial production, and tax vote.

EUR/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet, noted: “In the 4 hours chart, technical indicators are correcting extreme overbought conditions, but still far from suggesting the bullish run is over. In the same chart, the 20 SMA heads sharply higher, now about to surpass the 200 SMA after already breaking above the 100 SMA. A steeper correction could take place on a break below 1.1745, the 38.2% retracement of the same rally, while to the upside, a critical mid-term resistance comes at 1.1890. Support levels: 1.1790 1.1745 1.1700 Resistance levels: 1.1860 1.1890 1.1930.”

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.