Yields on US Treasury bonds record highs in months, boosting the US dollar. The 10-year rate reached 1.66%, the highest level since January 2020, which is keeping the EUR / USD under downward pressure.
The Federal Reserve will announce its monetary policy decision on Wednesday. No changes are expected. The focus will be on the statement, Jerome Powell's press conference, and new macroeconomic projections from FOMC members. The market will wait to see what the Fed says about the rise in Treasury yields.
On the technical level, we note the EUR / USD pair, in 4-hour charts it is trading below the 21 SMA and within a downtrend channel formed in a 4-hour chart, showing a bearish signal.
In case of extending the fall of the EUR / USD, it has a support in the zone of 1.1870, which coincides with the minimum of the downtrend channel. Below, the next support is at 1.1840 Murray 1/8 zone.
In the opposite direction, the key level is at 1.1930. This area, in addition to being a dynamic resistance, is where the 21 SMA is located, and the top of the bearish channel in a 4-hour chart. A confirmation above would point to greater strength for the euro, targeting the 200 EMA located at 1.2043. As long as it remains below 1.1930 the bias will point to the downside.
Support And Resistance Levels For March 17 - 18, 2021
Resistance (1) 1.1940
Resistance (2) 1.1980
Resistance (3) 1.2014
Support (1) 1.1870
Support (2) 1.1841
Support (3) 1.1798
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Trading tip for EUR/USD for March 17 - 18, 2021
Buy above 1.1935 (SMA 21and top bearish Channel) with take profit at 1.2043 (EMA 200), stop loss below 1.1895.
Sell if pullback at 1.1930 (Top bearish channel) with take profit at 1.1890 and 1.1870 (Support), stop loss above 1.1965.
