EUR/USD cautious near 1.0780, House vote eyed

The demand for the single currency remains subdued on Thursday, with EUR/USD posting moderate losses around 1.0780/70.

EUR/USD looks to House vote for direction

Spot is trading on the defensive for the second session in a row today after the recent rally lost momentum near YTD peaks in the 1.0830 region, always against the backdrop of a mild risk aversion sentiment and some tepid recovery of the buck.

Today’s House vote on the American Health Care Act should be crucial for the near to medium term outlook of the greenback. If the bill passes, it could mean a ‘green light’ for Trump’s ‘promised’ fiscal stimulus and carries the potential to morph into the much-needed catalyst for a leg higher in USD.

EUR/USD levels to watch

At the moment the pair is retreating 0.09% at 1.0786 facing the next support at 1.0768 (low Mar.23) followed by 1.0717 (low Mar.21) and finally 1.0704 (low Mar.16). On the other hand, a breakout of 1.0825 (high Mar.22) would target 1.0829 (2017 high Feb.2) en route to 1.0873 (high Dec.8 2016).