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Andreas Zanin
Analysis | April 9, 2021

USD and bond yields

Enclosed we will look at bond yields and their influence on the US Dollar Index and a trade set up in USD/SEK.

T Note 10 Year Pulls Back To Support

In recent posts, we noted that the USD would probably move higher with bond yields and March saw the USD to strengthen but now we have a correction in bond yields and the DXY has fallen back. In terms of the 10 Year T Note we have support at 1.60 and then major support at 1.500. We are looking for a push off support and move up to 2.00 to firm the USD.

DXY Watch the 92.00 Support Level

 The DXY has pulled back to major support at 92.00 and we have fallen below the 20 day moving average. We are now looking for a move up above 92.50 resistance and back above the 20 day moving average to trigger follow-through buying to the upside. Most traders don’t have the DXY to trade so a good pair to look at is USD/SEK.

USD/SEK

While only a minor part of the DXY the SEK mirrors its movements very closely. We saw a nice move up in March and now we have pulled back after falling back below the 20 day moving average. We have support at 8.500 and a move back above 8.600 is expected to follow through to the upside.

 

 

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