EUR/USD PRICE OUTLOOK: US DOLLAR EYES MONTHLY CPI REPORT, BOND YIELDSUS Greenback surrendered a few of its latest features in opp
EUR/USD PRICE OUTLOOK: US DOLLAR EYES MONTHLY CPI REPORT, BOND YIELDS
- US Greenback surrendered a few of its latest features in opposition to key FX friends throughout Tuesday commerce
- DXY Index bumped into resistance across the 92.00-handle and 61.8% Fibonacci retracement
- EUR/USD worth volatility may speed up with Treasury yields owing to inflation information due
- Sharpen your technical evaluation expertise or study implied volatility buying and selling methods!
The US Greenback stumbled decrease on Tuesday and ended its four-day streak of features. US Greenback weak spot was felt throughout the board of main foreign money pairs and seemed primarily pushed by a modest pullback in Treasury yields. On stability, the broader DXY Index slipped practically -0.4% with EUR/USD and GBP/USD popping 53-pips and 65-pips, respectively.
DXY – US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (23 OCT 2020 TO 09 MAR 2021)
Chart by @RichDvorakFX created utilizing TradingView
US Greenback bears look like pushing again with the DXY Index probing its 61.8% Fibonacci retracement degree highlighted on the chart above. The broader US Greenback additionally appears to be dealing with headwinds because the relative power index pivots decrease from ‘overbought’ territory and the MACD indicator factors to waning bullish momentum. This all pushed the DXY Index again inside the confines of its higher Bollinger Band.
That mentioned, the most recent transfer by the US Greenback appears extra like a mere pause of its broader rebound try. Reclaiming the 92.00-price degree might inspire one other take a look at of the 61.8% Fib earlier than the 200-day easy shifting common drifts into focus. Then again, if US Greenback bears proceed to face their floor because the week progresses, we might gravitate towards prior resistance-turned-support close to the 04 February swing excessive.
USD PRICE OUTLOOK – US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)
USD worth motion is predicted to maintain heating up judging by the most recent in a single day implied volatility readings for choose US Greenback FX pairs. This brings to focus probably high-impact occasion threat posed by the upcoming launch of month-to-month US inflation information, which is slated to cross market wires 10 March at 13:30 GMT.
To that finish, a hotter-than-expected CPI print might spark one other upswing in bond yields and the US Greenback. To not point out, outcomes of the 10-year Treasury public sale anticipated Wednesday at 18:00 GMT additionally has potential to weigh materially on the course of yields and the US Greenback. USD/CAD volatility might be value protecting on the radar all through Wednesday’s buying and selling session as effectively in gentle of the scheduled Financial institution of Canada rate of interest resolution.
Really useful by Wealthy Dvorak
Introduction to Foreign exchange Information Buying and selling
— Written by Wealthy Dvorak, Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market perception
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