Technical Analysis

Yields moving lower in the US which has helped push the dollar lower

USD only higher vs the CAD now

The USD has moved lower in the NY session. It is now only up vs the CAD.

The catalyst have been some weaker manufacturing data early on.  More recently the JOLTs and Michigan consumer confidence were better but so far the dollar fall is not detered. It is Friday and flows can be an impact.   However, it is worth monitoring for a stall or correction.

Also helping the downside for the greenback is a sharp fall in US yields today  The 10 year note’s yield has moved to a low of 2.5778%. We are currently trading just above that level. That is down about 5 bps on the day. 

The US yields are lower across the board.
Looking at the daily chart below, the yield is moving away from the 50% of the move up from the September 2017 low at 2.6369% and is also back below the low from February at 2.6168%. The low yield from January is down at 2.5429% and is a target on more weakness.  
On the daily chart, the 10 year yield is pushing toward the 2019 low

Drilling to the hourly chart below, traders are finding a cause for pause of the move lower against a lower trendl line at 2.5768% – just below the low yield for the day.  

Traders may lean against the level with stops on a break below.  That may slow the dollars fall as well (look for it).  

So be aware.  The fall in yield seems to have helped contribute to the fall in the dollar today. However, there may be a stall support level that could slow the falls. 

The 10 year is testing a lower trend line


Articles You May Like

GBP/USD: Attempted recovery fails ahead of 1.2500 handle, Powell’s testimony/FOMC minutes eyed
Forexlive Americas FX news wrap: Powell II, CPI a bit higher. Claims strong. Other Fed speakers weigh in
US initial jobless claims 209K vs 221K estimate
US: Upcoming releases next week – NBF
Forex Trading Strategy: Reversal Scalping Strategy 📈💷

Leave a Reply

Your email address will not be published. Required fields are marked *