EUR/USD drops towards 1.0750 as USD jumps on House vote clarity

The EUR/USD pair witnessed some aggressive selling over the last hour, and finally broke the overnight consolidative mode to the downside, after the greenback extended the advance versus its main competitors, in the wake of some clarity on the House vote on the Trumpcare bill.

Earlier on the day, House Republican speaker Ryan and leader McCarthy noted that there will be a procedural vote Friday morning and a final vote by Friday afternoon on the health care bill. Further, the timing for the Trumpcare vote Friday was also announced by CNBC, citing that vote will start between 2-4PM EDT.

Moreover, a better risk sentiment combined with higher treasury yields also collaborate to the renewed selling interest seen behind EUR/USD. Attention now turns towards the fundamentals, with a flurry of flash manufacturing and services PMI reports on the cards from the Euro area, while the US durable goods orders and flash manufacturing PMI data will be reported in the NA session.

EUR/USD Technical Levels   

Valeria Bednarik, Chief Analyst at FXStreet notes, “In the 4 hours chart, the price is now stuck around a still bullish 20 SMA, whilst technical indicators have turned lower, with the Momentum already below the 100 level and the RSI around 54, while selling interest around 1.0820 remains strong. Still, the price needs to accelerate below 1.0765 to begin a downward corrective move, while only below 1.0700 bears will retake the lead. At this point, the pair needs to surpass 1.0828, February monthly high, to confirm a bullish extension towards 1.0870, December high. Support levels: 1.0765 1.0730 1.0700 Resistance levels: 1.0830 1.0870 1.0910.”