[EUR] Rebounding Euro 2021 0303

EUR/USD four-hour chart, source:FXDD.com

 cf. [EUR] EURO in the Correction 2021 0226

cf. [EUR] Rebounding EURO 2021 0225

Gjallarhorn doesn't have any position, now after the liquidation in February.

The currency pair succeeded to rebound forming V pattern after the sinkage below 1.20, four-week lows in the one-hour chart and the four-hour chart. But it hasn't exceeded the 120 exponential moving average in the one-hour chart, and its breaking-though the 20 moving average in the four-hour chart hasn't been completed, yet. The rebounding is still unstable.

While its retreating and rebounding, the pair fluctuated in the sidling Bollinger Bands being supported on the 120 EMA in the daily chart. The currency pair prepares to rise to 1.21 level. It seems that the rebound of euro may be restrained below 1.2200~1.2241 which is the upper band of the Bollinger Bands and the previous peak respectively.

The greenback stepped down from monthly tops on Tuesday after the risk sentiment recovered on retreating Treasury yields, which eased off the pressure on the Fed to act amid concerns about overheating of the economy.

The expectation of the reflation, the spread extension between the U.S. Treasury yields and that of another countries' raised the U.S. dollar. The yields spread between the U.S. Treasury and German Bund enlarged to 170 basis points more at once.

The yields retreated as Lael Brainard, member of the Fed said that the Fed watched the movement of the markets.

Brainard said, soaring and pace of the Treasury yields in the last week were focused. "If we see the chaotic situation threatening our targets or the continuous increase in yields, we will be worried," she added. "We are paying close attention to the market development," she stressed.

And the concern about the rising yield in Eurozone rises, too.

An high-level official at the European Central Bank worried the recent Yield Curves.

And the analysts at Bank of America predicted the dollar might be bullish more in the year. The expectation of the global economy recovery and the yield spread will support the dollar, they analyze. The U.S. news media CNBC foresaw the 10 percent of the U.S. economy growth in the first quarter.

Meanwhile, Jerome Powell, Fed Chair spoke the dovish stance and predicted the inflation wouldn't reach the Fed's goal in three years at least while his testimony.

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