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The U.S. dollar index rebounded to a more than two-week high, and the 10-year U.S. bond yield once rose to 4%. Technical vision analysis: The U.S. index may look towards the 200-day moving av

2024-01-04

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Wednesday (January 3) At the beginning of the year, it was always difficult to connect market movements to fundamentals. U.S. economic data is in a “Goldilocks” phase, neither too hot nor too cold. After the release of economic data that day, the U.S. dollar rose, which was boosted by the rise in the 10-year U.S. Treasury bond yield to more than 4%. The FOMC minutes briefly interrupted that move, which even a modest stock market close couldn't change.

dollar index

The U.S. dollar index reversed upward, but did not touch the 100.00-100.30 range. Currently, the trend for the U.S. Dollar Index is bullish, targeting the 200-day moving average. The previous decline failed to form lower swing lows, so traders will now watch for a bullish move in the index. As long as the index does not form a higher swing high, the direction of movement will remain bearish. If higher swing highs form, then things could become neutral for the time being.

EUR/USD

EUR/USD fell after rejection at 1.1120 and is now down to 1.0900. The pair's decline is normal and coincides with the rise that has occurred. A bearish correction is underway and traders will await the pair’s reaction near support, looking for opportunities to add to long positions. The current decline is likely to continue towards the 200-day moving average, and traders should wait for a bullish reaction before entering long positions.

Key levels to watch today:

Support levels: 1.0900, 1.0800, 1.0650, 1.0500

Resistance levels: 1.1000, 1.1120, 1.1185, 1.1300, 1.1360

GBP/USD

GBP/USD fell yesterday and settled around 1.2625, but the bearish trend did not extend in today's trading. The pair remains within the 1.2625 to 1.2800 range, so traders will await further reactions. If the pair can rebound strongly, it will continue to consolidate between 1.2625 and 1.2800. In the long term, the trend of the pair remains bullish, so traders will be more inclined to accumulate long positions.

Key levels to watch today:

Support levels: 1.2625, 1.2200, 1.2100, 1.2000

Resistance levels: 1.2800, 1.3000

USD/JPY

USD/JPY rebounded from 141.00 and moved above the 200-day moving average. The pair has been in a bearish trend, so the current rise is just a temporary reaction. Traders will wait for a bearish reaction near resistance points and look for shorting opportunities. As long as the pair continues to form lower swing highs and lower swing lows, the bearish scenario will continue.

Key levels to watch today:

Support levels: 142.00, 141.00

Resistance levels: 145.00, 147.00, 150.00

AUD/USD

AUD/USD moves into the 0.6700 to 0.6750 zone, where a bullish reaction is likely. Traders will wait for a rebound in this area as well as near the trend line. When a bullish candlestick forms, this is the time for traders to enter a long position. However, it is still possible that a bearish correction continues towards the 200-day moving average, and traders should remain cautious and plan long positions with this possibility in mind.

Key levels to watch today:

Support levels: 0.6700, 0.6500, 0.6350, 0.6170, 0.6000

Resistance levels: 0.6750, 0.6820, 0.7000

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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The U.S. dollar index rebounded to a more than two-week high, and the 10-year U.S. bond yield once rose to 4%. Technical vision analysis: The U.S. index may look towards the 200-day moving av

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