U.S. Dollar Strengthen On Higher Treasury Yields

The U.S. dollar traded higher on firm treasury yields despite U.S. debt ceiling talks that appeared to have stalled on Tuesday. If the congress fails to reach an agreement to lift the country’s borrowing capacity, volatility could increase dramatically. Furthermore, the U.S. dollar’s safe haven status may come under questioning in case of a possible U.S. default.

The euro fell back towards 1.0760 on the back of the greenback’s recovery while sterling slid below 1.24.

EUR/USD: Below 1.0740, a next target is at 1.07. On the upside, a current resistance is seen at 1.0870.

As expected, also the DAX corrected recent gains and fell towards the crucial 16000-handle. We expect the recent support area to range from 16000 to 15950 where bulls may take the opportunity to jump back in.

Daily Forex and DAX Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

We wish you good trades!

Any and all liability of the author is excluded.