Intraday Forex Wednesday, April 7 (EURUSD, USDJPY, etc.) The dollar softened as U.S. bond yields declined.


Hi everyone. This observation is made around 5:15 UTC today, with 30 minutes time frames. The Resistance and Support Line were constructed according to Fibonacci retrenchment. Any discussion is welcomed.

Global markets trended cautious on Wednesday, after Wall Street pulled back from record highs reached in previous sessions, while investors eyed for the upcoming earnings season for further signs of a global economic recovery, plus the possibility of rising inflation and proposals for higher taxes.

Meanwhile, the dollar declined on lower yields. A weakened T-note yields sap dollar’s interest rate differentials as traders rolled back aggressive expectations that the Fed will tighten its policy earlier than pledged.

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  • The euro down 0.03% to $1.18709, eased after rallied to a 2-week high of $1.18777 earlier today.
  • The dollar retreated since yesterday on lower T-note yields that weaken the dollar’s interest rate differential. Traders rolled back aggressive expectations that the Federal Reserve will tighten its policy earlier than pledged.
  • The euro, meanwhile, rallied following overnight economic data. investor optimism increased after Eurozone Apr Sentix investor confidence rose to a 2-1/2 year high of 13.1, stronger than expectations of 6.7.
  • The worsening pandemic, however, is leading to slower growth in Europe that is bearish for EUR/USD.
Important Levels to Watch for:
  • Resistance line of 1.19001 and 1.19320.
  • Support line of 1.17967 and 1.17648.

  • The dollar slipped to a 1-week low against the Japanese yen, extending its retreat from a 1-year high with traders taking advantage of its strong March performance as dropping Treasury yields pressured the greenback.
  • The greenback traded at 109.752 on the yen on Wednesday.
  • The dollar’s decline also came as investors recalibrated their expectations that the Fed will tighten its policy earlier than it has suggested. Financial markets have expected accelerating U.S. economic growth and inflation could force the Fed to abandon its pledge earlier, with interest rate futures pricing in a rate hike as early as late 2022 earlier this week.
  • The yen advance however, was offset as Japanese Prime Minister Yoshihide Suga gave a signal that there is a chance he could call a snap general election before his current term as head of the ruling Liberal Democratic Party (LDP) ends in September, according to the Asahi newspaper.
Important Levels to Watch for Today:
  • Resistance line of 110.556 and 110.904.
  • Support line of 109.429 and 109.080.

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