EUR/USD – Stuck at 5-DMA in Asia

EUR/USD’s attempt at 1.13 is being cut short by 5-DMA level of 1.1291 as expectations of hawkish talk from Fed’s Yellen is keeping the bid tone around USD intact.

Eyes EUR/GBP ahead of Yellen speech

A major upward/downward revision in UK’s second quarter GDP due later today could trigger action n the EUR/GBP cross and that could influence the EUR/USD pair. The Eurozone calendar is light with German consumer confidence and French GDP figures due for release.

Later in the day, US GDP and Yellen speech at Jackson Hole would take center stage. Markets expect Yellen to talk up rate hike bets, which is evident from the drop in gold and silver over the last few days.

EUR/USD Technical Levels

The spot was last seen trading around 1.1290 levels. Breach of 1.1293 (23.6% of May 2014 high – Mar 2015 low) would open doors for a rise to 1.1322 (Aug 16 high). Acceptance above the same could yield re-test of 1.1366 (Aug 18 high).

On the lower side, breakdown of support at 1.1264 (50% of 1.1616-1.0911) could yield test of demand around 1.1221 (100-DMA). Acceptance below the same could force bulls to unwind positions, thus opening doors for slide to 1.11 handle.