US Dollar Index: Joint central bank efforts tease DXY bulls below 103.00 ahead of Fed (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

The pair currently trades last at 103.81.

The previous day high was 104.48 while the previous day low was 103.69. The daily 38.2% Fib levels comes at 103.99, expected to provide resistance. Similarly, the daily 61.8% fib level is at 104.18, expected to provide resistance.

US Dollar Index (DXY) cheers the weekend news suggesting more liquidity in the market while tracing the recovery in the Treasury bond yields to snap two-day downtrend near 103.80 as the key week begins. In doing so, the greenback’s gauge versus the six major currencies cheers the hopes of more US Dollar-linked liquidity, as well as easing fears from the latest banking sector fallouts, ahead of Wednesday’s key Federal Open Market Committee (FOMC) monetary policy meeting.

During the weekend, Sky News reported the news of the UBS-Credit Suisse takeover on Sunday evening while stating that the UBS will pay 3 billion Swiss francs (£2.6bn) to acquire Credit Suisse. The news further adds that the UBS has agreed to assume up to 5 billion Francs (£4.4bn) in losses, and 100 billion Swiss Francs (£88.5bn) in liquidity assistance will be available to both banks.

On the same line were the comments from the US Federal Deposit Insurance Corporation (FDIC) mentioning that the deposits of Signature Bridge Bank will be assumed by a subsidiary of New York Community Bancorporation.

Furthermore, Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Federal Reserve, Swiss National Bank are all up for announcing joint actions to provide more liquidity via standing US dollar liquidity swap line arrangements.

The news also contributes to the market’s hopes of more liquidity and allows the US Treasury bond yields to pare the last week’s heavy losses. That said, the US two-year Treasury bond yields dropped the most in three years in the last week. That said, the US 10-year Treasury bond yields rose four basis points (bps) to 3.47% at the latest while S&P 500 Futures also rise 0.70% intraday even after a downbeat Wall Street closing.

Moving on, risk catalysts will be more important for the US Dollar Index traders ahead of Wednesday’s FOMC decision. Additionally, preliminary readings of the US March month S&P Global PMIs will also be important for DXY traders to watch for fresh impulse.

US Dollar Index remains sidelined between an ascending support line from the mid-February and a one-week-old descending resistance line, respectively near 103.60 and 104.40.

Technical Levels: Supports and Resistances

EURUSD currently trading at 103.81 at the time of writing. Pair opened at 103.87 and is trading with a change of -0.06% % .

The pair is trading below its 20 Daily moving average @ 104.59, above its 50 Daily moving average @ 103.45 , below its 100 Daily moving average @ 104.37 and below its 200 Daily moving average @ 106.83

The previous day high was 104.48 while the previous day low was 103.69. The daily 38.2% Fib levels comes at 103.99, expected to provide resistance. Similarly, the daily 61.8% fib level is at 104.18, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 103.55, 103.22, 102.75
• Pivot resistance is noted at 104.34, 104.81, 105.14

[/s2If]
Join Our Telegram Group