The US dollar index is trading flat in the early hours of the European market. The USD index yesterday’s recovery caped following the declining US treasury yield. Moreover, major currency peers appeared to be cautious before the ECB monetary policy.
The U.S. Dollar Index against a basket of six currencies marginally down 0.01% to 91.123. Declining US treasury yield eliminate intensity from any bullish attempt in the dollar. Undeniably, the US Treasury yields of the key US 10-year benchmark expended the monthly decline and slide back to 1.53%, this level last time US Treasury yield hit in March. Today, investors must be eyeing the US initial jobless claims number along with ECB monetary policy to find further opportunity in the market.
Based on the technical analysis, the USD index was not able to sustain below 90.7 level and bounce back. So, the 90.7 level seems to be the immediate support zone. Sustaining below the 90.7 levels might lead to further lower levels. However, the top 91.7 level proved to be the key resistance level before it develops the bull flag.
The EUR/USD pair repeated with its sideways price moves on Wednesday and finally settle down practically unaffected for the second successive session. The above-mentioned declining US treasury yield is supportive of the US dollar. Moreover, the Fed dovish outlook also seems to be favourable for the pair.
EUR/USD pair moved up 0.10% to 1.2045 in the early session of the European market. Investors are eyeing the European Central Bank (EBC) monetary policy decision, which is due later in the day. Any encouraging comments from the central bank about the economic outlook or indications of tightening the bond purchases are broadly expected to boost the Euro.
Based on the chart pattern, the 1.2154 level appeared to be the key resistance zone at the higher levels, where bulls might pause for a while. Sustaining above the 1.2154 level might add further strength to the pair. However, at the lower levels, the 1.1950 seems to be an immediate support zone, before it slides down to lower levels.
GBP/USD pair halts its upside movement over a cautious market atmosphere, despite the weakness in the US dollar. Moreover, the US dollar looks weak alongside the treasury yield and following the US dollar. However, vagueness around Northern Ireland Brexit deal maintains to cap on the upside of the British pound ahead of the ECB meeting.
The GBP/USD pair strengthened 0.11% to 1.3944 in the early hours of the London opening. The upturn in the GBP stays restricted by the ongoing Brexit worries encircling the Northern Ireland (NI) border concern, even though the UK PM Boris Johnson is proposing his objective to do anything required to ensure an agreement.
Based on the technical analysis, the 1.4040 level appeared to be the immediate key resistance zone. Sustaining above the 1.4040 level might add further strength in the pair following the positive economic figures. However, at the lower levels, 1.3860 might play a key support zone in the short-term period. Meanwhile, the US initial jobless claims are due later today, which might provide the further trading opportunity for the pair.