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Fed Chair Powell offered hawkish remarks during yesterday’s Senate testimony and created volatility in the markets, with the pair being soft today
Weekly Timeframe The below shows the weekly timeframe of FXCM's USDOLLAR basket. We have applied a triple moving average system to assess its trend. The green shorter-term moving average is above the mid-term orange moving average, and the mid-term orange moving average is above the longer red-term moving average. This is a bullish formation. The weekly stochastic is also above 80 (aqua arrow), which suggests underlying bullish momentum. Past Performance:…
A new wave of risk aversion was witnessed earlier, which sent more flows towards the Japanese Yen, as news around the Omicron variant continue to dictate market moves
The pair rises after its poor start to the week, as renewed Omicron jitters, lead markets to a repricing of their Fed tightening expectations
The pair plunged on Friday after news of a new concerning Covid-19 variant, which sparked a risk-off wave, but today it covers some of the losses
News of the new Covid-19 variant on Friday harmed the greenback, as they casted doubt over the Fed’s tightening path and allowed the pair to stage a solid recovery, but today it is on the back foot
Past Performance: Past Performance is not an indicator of future results. The left chart shows the USDOLLAR daily. Its price is in the bullish area, between the upper blue and upper red bands. The right side shows the H1 scale. The greenback has pulled back today. The reaction has been volatile, with the USDOLLAR retracing to the S3 pivot. The reaction is the market reprincing the ability of the Fed…
Risk-off mood dominates markets today, but the US Dollar fails to benefit, allowing the pair to push higher, reacting from Wednesday’s 2021 lows
Risk aversion was prevalent is the Asia-Pacific session, after WHO warned yesterday about a new COVID-19 variant, with the Japanese Yen emerging as the main beneficiary
The Primary Trend The EURUSD monthly below (chart 1) has charted a lower peak followed by a lower trough - the classical definition of a downtrend. Due to the longer time scale, the primary trend for EURUSD is down. Until there is a change in the pair's primary trend, impulse moves down will be stronger than corrective moves up on the lower time frames. The stochastic is heading towards the…
The pair has entered its fourth losing week and extends its losses today, despite some containment of the US Dollar’s strength
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