Markets on Thursday: The Dollar Marches on as ECB Approaches

Posted Thursday, April 26, 2018 by
Rowan Crosby • 1 min read

The USD continues to be the story of the week as we had another day in the green. Despite much in the way of economic data to drive the Greenback managed to push higher.

One of the key drivers of a strong USD is treasury yields. The US 10-year is now at 3.00% which is causing money to flow into the USD as it is slowly but surely getting more appealing.

The grind higher kept the majors under pressure with a host of decent moves. The EUR/USD is the main focus on Thursday ahead of the ECB interest rate decision. As it stands we have already started testing key support that I outlined on Monday.

If Mario Draghi comes out with a dovish tone as he is often known to do, then we might be in for more downside ahead.

Bitcoin ran into a host of sellers as it tried to rally back to the 10,000 mark. Since the tax time selling has eased up, we’ve had a decent move to the upside. That now appears to be fading and the sellers are back in control for now. On the day BTC was down 10% which is par for the course these days.

USD Breakout Mode

I’ve been watching the key support and resistance levels closely in the USD and I think we are going to now be holding the 91.00.

As I mentioned yesterday, Friday will be a stern test as we have to deal with US GDP. As mentioned we have the ECB today, but the USD will be more focused on core durable goods orders.

My upside target remains at 91.80 and I am thinking that we are now getting increasingly bullish, with much of the geopolitics hopefully behind us.

US Dollar Index (DXY) – 240 min Chart.
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