FxWirePro: USD remains well-bid on trade concerns; will it last?

The day is USD’s.

• The dollar remains well-bid through the day as trade concerns and concerns over global economic growth continues to push investors to the safety of the USD. After four consecutive daily declines, the USD remains well-bid today, as the USD bulls provided support at rising trend-line, shown in Chart.
• According to insiders, familiar with the matter, the Sino-American negotiations are hardly making any progress as talks stalled over the alleged Intellectual property theft and need for stringent law in practice. On this topic, both sides remain far apart and to such an extent that the much-anticipated final face to face meeting between president Trump and President Xi Jinping may not happen even in April. It was originally scheduled for March.

However,

• Fundamentally speaking, USD is not yet out of the woods as bond yields continue to decline. Since the beginning of March, U.S. 2-year yields have declined by more than 10 bps and so far showing no signs of a rebound.
• The above chart also suggests caution, as the price is yet to clear the down-trending resistance line. We suspect that there could be a re-test of the trend line.