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

The EUR/USD is attempting a break above the 200-HMA of 1.1336.
Investors ignore upbeat comments from Fed's Powell, T-yield remain flatlined

The EUR likely to follow GBP/USD, draft Brexit deal done, but it needs to pass parliament.

Omkar Godbole FXStreet Contributor

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

EUR/USD

Overview:
    Last Price: 1.1338
    Daily change: 15 pips
    Daily change: 0.132%
    Daily Open: 1.1323
Trends:
    Daily SMA20: 1.1385
    Daily SMA50: 1.152
    Daily SMA100: 1.1568
    Daily SMA200: 1.1824
Levels:
    Daily High: 1.1348
    Daily Low: 1.1263
    Weekly High: 1.15
    Weekly Low: 1.1316
    Monthly High: 1.1625
    Monthly Low: 1.1302
    Daily Fibonacci 38.2%: 1.1315
    Daily Fibonacci 61.8%: 1.1295
    Daily Pivot Point S1: 1.1274
    Daily Pivot Point S2: 1.1226
    Daily Pivot Point S3: 1.119
    Daily Pivot Point R1: 1.1359
    Daily Pivot Point R2: 1.1396
    Daily Pivot Point R3: 1.1444

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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