US Dollar Index –
After a lot of high impacting news for the dollar this week it is crucial that we determine the direction of the dollar heading into a new week.
News Summary –
There was one question every investor was eager to gain insight on and that was whether we would be given a clear path and date for when the US will begin to start tapering bond purchases.
Powell’s speech certainly gave a hawkish tone however as we were not given a clearer timeline on the above this held the dollar back and is the reason, we didn’t see an impulsive move that matched the hawkish tone we seen. We should continue to monitor closely the numbers coming out of the US over the next few months to give hints as to when the Fed will be pressured into putting the ball into motion so to speak.
Analysis –
Moving into next week we are looking for a bearish impulsive move from the US Dollar. Moving on to the 4hr chart we can see we have just posted a double top and initially bounced. We anticipate a move down towards the neckline with full confirmation of further bearish pressure on the horizon after a break and retest of the neckline and the minor ascending “watch for break” trend.
We will be monitoring USD pairs for shorting opportunities.
As always, I’d love to hear your thoughts on the US Dollar Index and what your outlook is. Let me know in the comments below.
Hope you have had a profitable week in the markets, and it continues through into next week.
The Fx Chartist
After a lot of high impacting news for the dollar this week it is crucial that we determine the direction of the dollar heading into a new week.
News Summary –
There was one question every investor was eager to gain insight on and that was whether we would be given a clear path and date for when the US will begin to start tapering bond purchases.
Powell’s speech certainly gave a hawkish tone however as we were not given a clearer timeline on the above this held the dollar back and is the reason, we didn’t see an impulsive move that matched the hawkish tone we seen. We should continue to monitor closely the numbers coming out of the US over the next few months to give hints as to when the Fed will be pressured into putting the ball into motion so to speak.
Analysis –
Moving into next week we are looking for a bearish impulsive move from the US Dollar. Moving on to the 4hr chart we can see we have just posted a double top and initially bounced. We anticipate a move down towards the neckline with full confirmation of further bearish pressure on the horizon after a break and retest of the neckline and the minor ascending “watch for break” trend.
We will be monitoring USD pairs for shorting opportunities.
As always, I’d love to hear your thoughts on the US Dollar Index and what your outlook is. Let me know in the comments below.
Hope you have had a profitable week in the markets, and it continues through into next week.
The Fx Chartist