fbUSDIDX Forecast | US Treasury yield growth may increase the attractiveness of the dollar | IFCM Hong Kong

Technical Analysis USDIDX : 2021-03-01

Recommendation for USDIDX:

Strong SellSellNeutralBuyStrong Buy

Above 91,2

Buy Stop

Below 89,5

Stop Loss

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Senior Analytical Expert
Articles 1706
MA(200) Neutral
Fractals Neutral
Parabolic SAR Buy
Bollinger Bands Neutral

Chart Analysis

IFC Markets Tech Analysis

On the daily timeframe, USDIDX: D1 approached the resistance line of the long-term descending channel. It must be broken upward before opening a position. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if USDIDX: D1 rises above the upper Bollinger band and the last upper fractal: 91.2. This level can be used as an entry point. We can place a stop loss below the Parabolic signal and the lower Bollinger band: 89.5. After opening a pending order, we can move the stop loss to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the four-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (89.5) without activating the order (91.2), it is recommended to delete the order: the market sustains internal changes that have not been taken into account.

Fundamental Analysis

The US Treasury yield rose markedly. Will the USDIDX quotes grow ?

The 10-year U.S. Treasury note yield approached 1.6% per annum, whereas at the beginning of this year it was only 0.9%. Rising yields may increase demand for the dollars needed to purchase bonds. Some investors believe that the Fed will start tightening its monetary policy and raising rates much earlier than previously thought. This may be due to the active recovery of the American economy after the Covid-19 pandemic. Most of the economic indicators published last week exceeded their forecasts. The key event of this week is the release of the Non-Farm Payrolls on Friday.

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