The Dollar’s Climb: A Trend With More Fuel in the Tank?

The USDOLLAR daily chart is in a clear uptrend, defined by a sequence of higher troughs and higher peaks. The EMAs are aligned in a bullish formation with strong angle and separation, and the RSI remains above 50 - signalling positive underlying momentum for the greenback.

Market participants positioned themselves well early on, with the first higher peak after a higher trough forming at point 1, even before Fed Chair Jerome Powell pushed back - in unusually blunt terms - against a December rate cut during his 29 October press conference.

Since then, the dollar has been on a tear. A break below the most recent higher trough would warrant a reassessment, but for now the USDOLLAR continues to present a firm uptrend.