Trade view /
26 February 2018 at 7:36 GMT
US Treasuries have gained significant ground with the 10-year yield declining to near 2.85% on Monday from a four-year peak just above 2.95% last week amid some moderation in Federal Reserve policy tightening expectations.
The decline in yields undermined dollar support with the US currency unable to sustain rallies against the yen as the currency index retreated. German yields also moved lower as Italian political uncertainty triggered some uncertainty with the combination limiting euro support.
Lower US yields also helped underpin equity markets with solid gains in US and Asian stocks while a dollar retreat provided support to energy prices with crude at the highest level for over two weeks.
- We posted mild net daily gains but all trading confined to the previous days range, an indecisive Inside Day.
- Buying posted in Asia.
- Trading within a Bullish Channel formation.
- The rally is close to a correction count on the intraday chart.
- Previous resistance at 0.7860 now becomes support.
- We look to set longs at our bespoke indicator levels (0.7850).
AUDUSD (intraday four-hour chart):
Entry: we look to buy at 0.7850.
Resistance: 0.7950 / 0.7992 / 0.8010.
0.7850 / 0.7841 / 0.7818.
— Edited by Michael McKenna
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