EUR/USD holds above 1.05, Eyes Yellen speech

EUR/USD closed below 10527 (61.8% of 1.0341-1.0829) on Thursday, but holds above 1.05 handle despite the sharp rise in the treasury yields and Fed rate March rate hike bets.

Focus on Yellen speech

The American dollar could strengthen further if Chair Yellen and Vice Chair Fischer sound hawkish and make the March Fed rate hike a done deal.

As per Bloomberg report, the odds of a rate hike in March currently stand at 90%. Traditionally, Fed has moved rates only when rate hike odds were at least above 60%.

The two-year treasury yield is trading sideways in Asia after having hit the highest level since 2009. The sideways action around 1.31% in Asia could have helped EUR/USD hold above 1.05 levels.

EUR/USD Technical Levels

The spot was last seen trading around 1.0510 levels. A break above 1.0527 (61.8% of 1.0341-1.0829) would expose 1.0545 (5-DMA) and 1.0556 (10-DMA). On the lower side, a breach of 1.05 (zero figure) could yield a sell-off to 1.0456 (76.4% of 1.0341-1.0829) and 1.04 (zero figure).