Fed Chair Jerome Powell is due to testify in front of the Senate Banking Committee today at 3:00 pm GMT. Mr. Powell is seeking confirmation of his reappointment as Chair of the Federal Reserve. Given that inflation is running at its fastest pace in almost 40 years, it is expected that a large part of the proceedings will be dedicated to reaffirming that the Fed will use its available resources to control prices. Ahead of the testimony, the daily chart of FXCM's USDOLLAR basket shows the greenback to be neutral; it is positioned between the two blue bands. The hourly chart on the right does show bullishness. I.e., the hourly EMAs are in bullish mode and the hourly stochastic is heading upwards, towards the 80 level. Last week's Fed minutes were hawkish and the same tone is expected today in Washington. The Fed Chair's appearances before the Senate Banking Committee are often accompanied by greenback volatility. This is likely to be the case today. If the daily chart heads upwards and the hourly momentum moves into the 80 region, the market may be adjusting to potential hawkish testimony.
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Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.