USDOLLAR Charts Higher Peak On Weekly Chart
Past performance is not an indicator of future results
Following our previous analysis, the USDOLLAR has built off of its reference low. This week's price action has charted the next higher peak in a series of higher troughs followed by higher peaks. The USDOLLAR is in a defined uptrend. Furthermore, the greenback's momentum has increased throughout 2021. This is evident by the shift up in gradient from the green trendline to the orange trendline.
We now turn our attention to the stochastic. It looks to be crossing bullishly (blue square) and heading towards the upper quintile. If successful, this will be regarded as a very bullish development. Moreover, if the stochastic is able to maintain its position above 80 (aqua arrow), it will be indicative of an underlying bullish momentum building on a primary basis.
USDOLLAR strength makes sense given that inflation is incredibly strong. The Fed is also continuing with its asset purchases but at a declining rate so that the program ends in the middle of 2022. To this end, yields are adjusting upwards. If this continues, USDOLLAR strength is likely to be bolstered.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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