Daily Technical analysis for March 9, 2021petar skakalov
Dollar eases slightly as Treasury yields retreat
Dollar loses some ground to start European morning trade
The greenback is pushed a little lower across the board as we see Treasury yields retreat on the day, with 10-year yields down by nearly 5 bps to 1.542%.
That is seeing the dollar slip as EUR/USD climbs from 1.1850 to 1.1875 while USD/JPY has also slumped from 109.20 earlier to 108.85 currently – down to session lows.
Of note, EUR/USD is keeping above its 200-day moving average (blue line) for now. However, buyers still have more convincing to do to suggest a turnaround.
As things stand, Treasury yields are on the retreat after touching above 1.60% yesterday but the mood remains more tentative and will likely stay that way ahead of the FOMC meeting next week; though the market reaction may be showing some expectation that the Fed will be taking up some action (verbal or otherwise) to curb the rise in yields.
Gold price within positive pattern
Gold price’s decline stopped at 1676.75, to start providing positive attempts now, and by taking a deeper look at the chart, we find that th recent trades confined within falling wedge pattern that might push the price to turn to rise in case breaching 1695.00 level.
Therefore, we prefer staying aside until we get clearer signal for the next trend, which we will get through breaching 1695.00 resistance or breaking 1682.00 support, noting that breaching this resistance will push the price to achieve intraday gains that target 1715.00 followed by 1740.00 levels initially, while breaking the support represents the key to resume the main bearish trend that its next target located at 1655.00.
The expected trading range for today is between 1670.00 support and 1710.00 resistance.
The expected trend for today: Neutral
Source: Technical analysis