EUR/USD clocks 13-1/2 month high of 1.1526 as Trump fails 'Litmus test'

The American dollar is being offered in Asia against most majors, possibly on the news that the ‘Trumpcare’ is now officially dead. The EUR/USD has jumped to 13-1/2 month high of 1.1526 in Asia. 

Two more Senators to vote against health bill - Bloomberg

Bloomberg report says, “Two republican senators - Mike Lee and Jerry Moran - now oppose majority leader Mitch McConnell’s health care plan, effectively killing the legislation in its current form”

The health care bill was largely seen as Trump’s test of legislative ability. Its failure means Trump will have a hard time pushing through the much awaited tax and fiscal reforms. 

Consequently, the USD is being offered in Asia, even though there is little/no weakness in the treasury yields. The 10-yr yield remains flat lined around 2.3%. 

EUR/USD Technicals

FXStreet Chief Analyst Valeria Bednarik notes, “From a technical point of view, the pair retains its long-term positive tone… An upward acceleration through 1.1490 should see an upward extension towards 1.1615 May 2016 high; while beyond this last the next level to watch is 1.1713, August 2015 high.” 

Key levels

A break above 1.1534 (Aug 2015 high) could see the spot test supply around 1.16 - 1.1616 (May 2016 high). On the downside, failure to hold above 1.15 could mean a re - test of the session low of 1.1471.