FXCM's USDOLLAR basket's daily chart (left) continues to trade in its bullish channel between the upper blue and red bands. The hourly chart (right) is also showing positive developments. Its trend following EMAs and momentum based- stochastic have crossed. Development of angle and separation by the EMAs and movement by the stochastic into the 80+ area (blue arrow) will be a bullish development.
This week has important items on the calendar which will influence the greenback.
Federal Reserve Chair Jerome Powell will testify to the Senate on Tuesday and House on Wednesday. This is regarding the Fed's semi-annual monetary policy report, which was released on Friday. The market will watch this, especially regarding any hints about the pace of rate hikes and level of the terminal rate.
Friday sees the US jobs data release. Previous's data surprised to the upside, showing 517,000 jobs were created in January. The market is curious to know if this was an outlier based on seasonal adjustments, and Friday's release will help in determining this.
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.