USD Index

The US dollar index marginally fell in the early hours of the European market. The USD index appeared to be holding close to the four-week lower levels. US bond yields dragged back from March’s rise as the Federal Reserve continues to maintain that interest rates at the lower levels as they previously planned.

The U.S. Dollar Index against a basket of six currencies slightly moved down 0.04% to 91.640. The dollar seems to be losing the power a bit in position with the drop in US bond yields following the Fed dovish stance.

Fed Chairman Jerome Powell stated that the Fed will slash its monthly bond-buying before pledging to an interest rate hike. However, some investors believe that the Fed will change its stance sooner than they have planned. 

Based on the technical analysis, the US dollar index broke the key support 91.7 level. Sustaining below 91.7 levels might add further weakness in the index, which could lead the USD index to the 90.2 level in the short-term period.

EUR/USD

EUR/USD soared to four-week higher levels following the selling in the US dollar index. The US dollar possibly remained weakened over reduced bets after witnessing no chance of interest hike sooner than expected. 

EUR/USD pair slightly declined 0.02% to 1.1976 in the early session of the European market. Overnight the pair hit the top four-week 1.19845 level following the recent strength of the Euro. Today market must be eyeing the German CPI, US Retail Sales data, and US initial jobless claims for the fresh opportunity for trades.

Based on the chart pattern, after breaking the key resistance level 1.1954, the pair witnessed a nice positive run on the Wednesday session. Technically the next immediate resistance might appear around the 1.2014 level. Breaking and sustaining above 1.2014 level might develop further bull flag in the market.

GBP/USD

 GBP/USD pair trading pattern seems to be taking cautious attitude ahead of the Brexit talk and key the US economic data due today. It looks like global uncertainties are halting the positive run. 

GBP/USD pair slightly moved down 0.01% to 1.3778 in the early hours of the London opening. However, UK GDP added the strength in the pair but due to pressure from Brexit talk and multiple vaccine issues probably putting pressure on the British pound in the near-term period. 

Based on the technical analysis, the 1.3854 level appears to be the next resistance zone. If it sustains above 1.3854 level might further see further upside in the pair. But there is a high possibility that it might pull back from the above-mentioned resistance zone. However, the 1.3760 perform to be the immediate support level. Sustaining below 1.3760 levels the pair might develop a further weakness for lower levels.