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Forex Market Analysis

Daily Market Update: Bond Yields approach 3%

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Dollar bulls looking for a breakout are finally finding support from U.S. interest rates as Treasury yields rise toward high levels since 2014. The yield on 10-year U.S. Treasury hits 2.99 percent.

Dollar bulls suddenly are breathing more easily, finding relief in Treasury yields that approached 3 percent for the first time in four years.

On the other hand, Australia CPI has reached 0.4% despite its forecast with 0.5%, which is not considered a benchmark of higher inflation.

EUR/USD

On the daily, the price had broken the up channel continuing with penetrating down the triangle

Taking into account that the price has rebounded from the lower trend line from the high of 2008

These all make the probability of bears higher with the expectation of its price to reach 1.215-1.2085

 

 

EUR/CHF

Swiss national bank was lately protecting the price at the level 1.2, every time the price had reached this level it directly pulled up the trigger

Until January 2015 when the SNB released the preservation of this level, which made the price suffered a downward move of more than 2000 pips!

So, this key level became a strong resistance after being a secure support.

As we see on the daily chart, the price rebounded from this level. Along with reversing from the upper edge of the up channel

Also the price has respected the broken up trend line

With overbought on RSI, the price is expected to go down to 1.1815-1.169

CAD/CHF

On the daily chart, the price rebounded from the lower trend line from the high of 2007

It’s the same level of the broken uptrend from the low of July 2017

With a combination of key resistance level at 0.7695, 61.8% Fibonacci, & B level of the harmonic pattern

Also with overbought in RSI, the price is expected to go bearish to retest 0.75

 

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