USD bounces in early trading with bond auctions in focus
The price of crude oil was choppy in early trading as investors reacted to the rising US rig count. According to Enverus, the total number of oil and gas rigs rose by 11 to an 11-month high of 502. Oil rigs rose by 4 to 375, the highest level since April last year. They rose in all the major oil basins, including Permian. However, another report by Baker Hughes showed that the number of oil rigs declined by 1 to 309. Oil prices have been relatively volatile in the past few days as investors focus on demand and supply dynamics.
The US dollar is rising as traders continue to watch the US bond market. The 10-year government bond yield declined by 2.78% to 1.68% in early trading while the 30-year dropped by 2.50% to 2.39%. Analysts are still reacting to the latest Federal Reserve interest rate decision and the ongoing recovery of the US economy. There are also concerns about inflation, which could rise above the Fed target of 2.0% in the next few months.
The economic calendar will have no major event today. The only important number will be from the United States, where the statistics agency will publish the latest existing-home sales numbers. The overall estimate is for the data to show that existing home sales declined by 3.0% in February after rising by 0.6% in the previous month. Recent building starts and new home sales numbers have been relatively strong. The European Central Bank (ECB) will release its current account numbers.
The XBR/USD pair declined sharply on Friday. Brent fell to a low of 61.12, which was substantially lower than the year-to-date high of 71. The price has since rebounded to 64.20, which is slightly below the ascending yellow trendline on the four-hour chart. It is also slightly below the median line of the Andrews pitchfork tool and is between the lower and middle lines of the Bollinger Bands. Therefore, the pair may attempt to rebound as traders eye the next key resistance level at 65.
The EUR/USD pair declined slightly in early trading. It fell to a low of 1.1870, which is slightly above the lower line of the Bollinger Bands. It also moved below the 23.6% Fibonacci retracement level while the Average True Range (ATR) has remained relatively stable. It is also along the lower support of the double-top pattern. Therefore, the pair may keep falling as bears target the next key support at 1.1835.
The BTC/USD pair declined sharply as bulls struggled to move above the psychological level of 60,000. It is trading at 56,887, which is slightly above the ascending yellow trendline. The Relative Strength Index (RSI) is at the neutral level of 47 while the price is slightly above the middle line of the Bollinger Bands. Therefore, the pair may rebound later this week as bulls target the upper side of the channel at above 60,000.