The EURUSD pair jumped to 1.1542 in Asia – the highest level since Aug. 9 as the Asian desks offered the USD in response to the overnight drop in the treasury yields. Should traders expect the pair to continue to climb toward 50-day MA? What does today’s 21 August EURUSD Technical Forecast reveal?
21 August, OctaFX – The news hit the wires on Monday that President Trump voiced concern regarding Fed’s policy tightening at a Hamptons fundraiser this weekend. As a result, the 10-year yield fell more than 5 basis points to 2.82 percent, dragging the USD lower with it.
EURUSD Fundamental Highlights
Moreover, the drop in the bond yields and the US dollar indicates the markets are worried that Trump’s criticism of the Fed may force the central bank to hike rates at a slower pace.
Looking ahead, the EURUSD could continue to climb toward 50-day MA located at 1.1613 if the treasury yields extend the decline.
It is worth noting that the EURUSD may not be able to score gains on the back of a drop in the Treasury yields if the Italian bond yields rise on fiscal concerns.
So, the EUR bulls need to keep an eye on how the Italian government bond yields are behaving.
21 August EURUSD Technical Forecast
At press time, the currency pair is changing hands at 1.1518 – up 1.92 percent from the recent low of 1.1301.
Resistance: 1.1530 (Aug. 6 low), 1.1613 (50-day MA), 1.1747 (Jul. 31 low)
Support: 1.1480 (session low), 1.1431 (5-day MA), 1.14 (psychological support)
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