EUR/USD: chipping away at 200-hour EMA, focus on Brexit news & GBP

The recovery rally in the EUR/USD gathered pace in Asia as the US treasury yields remained unchanged despite upbeat comments from Fed's Powell.

As of writing, the currency pair is attempting a break above the 200-hour moving average (HMA) of 1.1336. A convincing move above the MA hurdle looks likely as markets continue to ignore Powell's positive take on the US economy.

This is evident from the fact that the 10-year treasury yield hardly moved after Powell's comments and continues to roll in a sideways manner around 3.12 percent.

Further, the bullish pressure around the EUR could strengthen if the GBP/USD cheers the draft Brexit deal. Sterling, however, is more likely to fall as the demand for GBP puts continues to rise. Investors are likely fearing that the 586-page long draft deal may not pass through the parliament.

Also, an above-forecast US retail sales, due at 13:30 GMT, could lift the Treasury yields, pushing the US dollar higher across the board.

EUR/USD Technical Levels