EUR/USD: Above 50-day MA for the first time since mid April, eyes Draghi speech

EUR/USD moved above the 50-day MA in Asia rose to a three-week high of 1.1767.
ECB president Mario Draghi speaks to the European Parliament’s ECON committee.

Omkar Godbole FXStreet Contributor

The EUR/USD posted solid gains after the NFP release on Friday and moved convincingly above the 50-day moving average (MA) in Asia.

As of writing, the currency pair is trading at 1.1765.

The relentless flattening of the Treasury yield curve is likely weighing over the US dollar. Currently, the spread between the US 10-year and 2-year treasury yield stands at 28 basis points - the lowest level since August 2007.

Focus on Draghi speech

Mario Draghi, President of the European Central Bank (ECB), is scheduled to testify before the Committee on Economic and Monetary Affairs of the European Parliament about the economy, monetary policy, and virtual currencies in Brussels.

The EUR pairs could turn volatile during Draghi's speech and the common currency may pick up a strong bid if the central bank chief sounds hawkish on interest rates.

EUR/USD Technical Levels

Resistance: 1.18 (psychological hurdle), 1.1852 (July 14 high), 1.1915 (Jan. 9 low).

Support: 1.1738 (50-day MA), 1.1702 (5-day moving average), 1.1660 (10-day moving average).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	Shrinking
1H		Neutral	Low
4H		Overbought	High
1D	Bullish	Overbought	Low
1W	Bearish	Neutral	High
Updated Jul 9, 04:15 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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