The DXY is currently testing the 61.8% Fibo retracement level at 90.830. A failed break below will allow the DXY to retrace into the range between 91.822 to 92.437. The MACD is showing early signs of rolling over, the RSI is nearing the oversold zone and the stochastic indicator is consolidating in the oversold zone.
1. Fundamentally the dollar will be at the mercy of Fed chair Powell and the US 1Q2021 GDP results.
Powell is expected to remain accommodative, in line with the tone we heard from the ECB last week Thursday and most probably the Bank of Japan tomorrow morning. Other central banks such as the Bank of Canada and the Central Bank of Russia however opted for a more hawkish tone last week, global inflationary fears rising?
2. US 1Q2021 GDP is expected to climb 6.1% q-o-q and an above expected GDP print could provide the greenback with some short run support.
The US government 10-year yields found strong support on the 50-day MA yield of 1.559% earlier in today's session which has pushed yields back above the resistance level of 1.58%. Technical indicators on ten-year treasuries are also turning to the upside which is dollar positive.
Over the longer-term, definitely dollar bearish, back below 90.00 by June.
1. Fundamentally the dollar will be at the mercy of Fed chair Powell and the US 1Q2021 GDP results.
Powell is expected to remain accommodative, in line with the tone we heard from the ECB last week Thursday and most probably the Bank of Japan tomorrow morning. Other central banks such as the Bank of Canada and the Central Bank of Russia however opted for a more hawkish tone last week, global inflationary fears rising?
2. US 1Q2021 GDP is expected to climb 6.1% q-o-q and an above expected GDP print could provide the greenback with some short run support.
The US government 10-year yields found strong support on the 50-day MA yield of 1.559% earlier in today's session which has pushed yields back above the resistance level of 1.58%. Technical indicators on ten-year treasuries are also turning to the upside which is dollar positive.
Over the longer-term, definitely dollar bearish, back below 90.00 by June.