Intraday Forex Tuesday, March 4 (EURUSD, USDJPY, etc.) Optimism over the U.S. economy and a rise in U.S. Treasury yield lend support for the dollar.


Hi everyone. This observation is made around 5:00 UTC today, with 30 minutes time frames. The Resistance and Support Line were constructed according to Fibonacci retrenchment. Any discussion is welcomed.

Stocks slipped in Thursday trade as it braced for a new bout of volatility in equities and bond following a rise in U.S. & Asia-Pacific bonds yields.
Oil prices on the defensive as investors await the OPEC+ output cut decision later today.
Gold recovered from a near 9-month low overnight.

Optimism over the U.S. economy and a rise in U.S. Treasury yield lend support for the dollar.
Investors now await Fed Chair Jerome Powell's speech before a virtual Wall Street Journal Jobs Summit at 1705 GMT, for the trend in global bond markets, currencies & outlook of the central bank's monetary policy.

I also does analysis for some other currencies. Read more on the website on TECHNICAL ANALYSIS and DAILY MARKET NEWS.

  • The euro declined against the dollar at $1.20541 on Thursday.​
  • The euro failed to maintain its gains at the opening today as it traded lower against the U.S. dollar on a lack of buying interest. Sentiment remained prone to the broader U.S. dollar reaction to higher U.S. yields, especially if the U.S. yield rise starts to outpace other countries' bond yield bounce.​
  • Comments on Wednesday from Chicago Fed President Evans also were bullish for the dollar as he said that he shares the view that the recent rise in bond yields is healthy and he doesn't expect that there’s need to change the duration of the Fed's bond purchases.​
  • U.S. stock indexes, meanwhile, were under pressure overnight, which boosted some more liquidity demand for the dollar.​
  • The gains in dollar, however, were capped as U.S. economic data was negative. U.S. Feb ADP employment report rose weaker than expectations, and the ISM services index fell weaker than expectations.​
Important Levels to Watch for:​
  • Resistance line of 1.21113 and 1.21389.​
  • Support line of 1.20220 and 1.19943.​

  • The dollar extends its climb against the Japanese yen for second day, pushed to a level not seen since July. The USD/JPY on Thursday stood at 107.038.​
  • The Japanese yen hit a 7-month low on the dollar as hopes that vaccine distribution and more government stimulus will drive the U.S. economy into a solid rebound lifted the greenback and benchmark Treasury yields. The spectre of higher U.S. bond yields likely will undermine the low-yielding, safe-haven assets such as the yen.​
  • Comments by BoJ policymaker on Wednesday also weighed on yen, as he said that the BoJ should manage 10-year government bond yields within the current range of 0.2 percentage points on either side of its zero target. He also added that lowering interest rates further won't harm the lending functions of financial institutions. Kataoka's comments were bearish for the yen as they diminished speculation the central bank would widen its yield range.​
Important Levels to Watch for Today:​
  • Resistance line of 107.262 and 107.447.​
  • Support line of 106.666 and 106.481.​

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