[EUR] The Unstable Euro while Rising 2021 0311

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

 

cf. [EUR] Plunging Euro 2021 0308

cf. [EUR] Rebounding Euro 2021 0303

cf. [EUR] EURO in the Correction 2021 0226

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

The one of the major currency pair EUR/USD rebounds exceeding 20 Moving Average and reaching the upper band of Bollinger Bands in the four-hour chart. And the pair rises toward 20 Moving Average from the bottom band of Bollinger Bands in the daily chart. The traders can expect the bullish euro in the short term.

But it doesn't show the full-out upward trend yet. The weekly chart of the EUR/USD supported the euro around 1.1836 and the euro rose. But the dealers need to watch the euro more. There is still the possibility of forming the Head-and-Shoulders pattern which implies the trend turning. The traders need to prepare the correction of the currency pair to 1.1740~1.1600.

The currency pair could rebound due to the correction of the U.S. bond yields. As the Treasury yields go stable, the dollar stepped down.

Fears of spiking US interest rates from a weak Treasury sale on Wednesday failed to materialize as auction data showed sufficient demand to keep the benchmark yield stable. In the U.S. 10-y auction, the yields dropped to 1.52 percent and it led the euro up. The U.S. Treasury yields retreated, it is still under the pressure of rising though. Because it is expected that the U.S. economy will recover quickly than other countries'.

As Fed is predicted to keep its easing monetary policy for a while, the concern of the inflation in the United States rises. FOMC is hold in the next week, the market expect there will be a comment about the rising bond yield. Jerome Powell has spoken that Fed doesn't worry about the yields seriously, which made the yield surge.

A forex analyst Joseph Travasani at FXStreet.com spoke, the main momentum of the dollar was the U.S. yields and it wouldn't change. 

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