Inflation worries recede. USD fell consecutive 3 days. AUD and EUR remains strong (with trading strategy)

The dollar index was reported at 91.573. The US dollar index fell by about 0.6% this week, falling from a more than three-month high of 92.506 hit on Tuesday.

The U.S. dollar index is still up 1.6% this year, following the rise in the 10-year U.S. Treasury bond yield from less than 1% to 1.625% at the end of last weekend. The current yield has fallen to around 1.5%.

The Australian dollar and New Zealand dollar, the commodity currencies, hit nearly a week high last night. The Australian dollar was quoted at 0.77865 against the US dollar, and the New Zealand dollar was quoted at 0.7223 against the US dollar.

US President Biden signed the $1.9 trillion bill on Thursday, and the unemployment data released by the United States last week brought positive signals to the job market, which re-heated market risk appetite.

Ray Attrill, head of foreign exchange strategy at National Australia Bank (NAB), said: "For risky assets, a risk-free rate of 1.5% instead of 1% is obviously no longer a problem." Although for the U.S. dollar, "it seems too early to assert that it will resume the decline in 2020."

The euro against the US dollar also rose to a nearly one-week high of 1.1990 US dollars. The European Central Bank hinted on Thursday that it would speed up the printing of money to continue to reduce borrowing costs.

The U.S. dollar adjusted around 108.60 yen against the yen, having earlier retreated from a nine-month high of 109.235 hit on Tuesday.

Bit once rose above US$58,000, close to a record high. Bitcoin's latest report was $57,185.71, up more than 12% this week, and it broke $58,000 on Thursday, the first time since it hit a record high of $58,354.14 on February 21.

Trading strategy ( Source: Trading Central)

Pivot: 0.7800

Our preference: short positions below 0.7800 with targets at 0.7760 & 0.7735 in extension.

Alternative scenario: above 0.7800 look for further upside with 0.7820 & 0.7840 as targets.

Comment: a break below 0.7760 would trigger a drop towards 0.7735.

Supports and resistances:

0.7840

0.7820

0.7800

0.7777 Last

0.7760

0.7735

0.7720

Guideline for Trading Central strategy

Trend chart reading guideline

1. First look at the time period in the upper left corner of the chart：

・30MIN and 1H chart shows the trading suggestions for intraday

・Daily chart shows the market trend analysis in next 2-3 days

2. The blue horizontal line on the chart marks the pivot: pivot indicates the reversal of the market. When the price is above the pivot, it indicates an upward trend, when the price is below the pivot , it indicates a downward trend. When the price breaks through the pivot, the trend is reversed.

3. The red and blue thin curves in the Candlestick chart chart are technical indicators: Red line is  MA20+Bollinger bands, Blue line is MA50. under the Candlestick chart chart are also the technical indicators:  Blue line is RSI, Red line is 9MA;

4. The green horizontal line is the resistance level for a price increase, and is also the profit target for long orders; the red horizontal line is the support level for a price decrease, and is also the profit target for short orders.

How to use TC strategy？

1.[Pivot] is the reversal line of the market trend. When the price up the pivot line which means in Bullish, you can open a long position or Buy. on the contrary, when the price under pivot line which means in bearish. You ‘d better make short positions or Sell.

2. [our preference] is the main trading suggestion for your reference. You can exit your trading refer to this target or close positions before it.

3. [Alternative scenario] is the plan B for your reference.

4. [Comment] is the technical analysis of market trends and technical support for trading strategies.

5. [Supports and resistance] Supports are levels where the price tend to find support as it falls.

Resistances are levels where the price tend to find resistance as it rises. So, exit before the trend reverse.