FOREX Chart Of The Day: USD Confirms Strength

The USD continues to strengthen across the forex markets after a positive FOMC statement. 7 Fed officials see a rate hike in 2022 which was earlier than the original 2023 which fuelled the USD bulls. Will this continue?

I’ll be going over the US Dollar index as the USD showed strength.

Yesterday, we spoke about Gold and the Fed seems to remain neutral after the FOMC statement. So, we should see the USD strength continue. However, some Fed officials want to see a price hike in 2022 instead of 2023, which is what they originally said.

There has been a huge upside on the USD. I even broke above the major swing level at 91.40. It’s a decent level on the USD and the price trading above that just further confirms its strength.

The USD Index has rallied significantly after the FOMC reports which saw 7 fed officials seeing a rate hike earlier than 2023. The 91.40 level on the USD Index has been acting as a strong support and resistance for some time now and the price is currently trading above this level confirming the strength.

Now, trading this will be difficult unless you’re looking for short-term swing momentum trades. We want the price to consolidate around this area and hold above 91.40. I want to see something like what happened at 91.60 when the price got to the highs and consolidated before continuing to a breakout.

I also want to see some low ranging daily candlesticks so we can look for an opportunity to buy the USD again. We will likely see its strength continue until the end of June or July.

If the price holds above this level and consolidates we can expect the strength to continue. If we see low ranging daily candlesticks form here we can expect to see a breakout in the direction of the current trend.

The potential for rate hikes would come sooner and investors will start buying the USD off of that, so let’s see what happens in the future. But, the potential of the USD strength to continue is good. Watch the major currency pairs for pullbacks.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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