The Federal Reserve is going to hike rates this week but will the Fed begin to slow down the pace in which they tighten? What should we be looking for on the USD Index?
Watch the video to learn more…
USD Index Analysis
The USD Index is working within a bullish channel but the price could be disrupted by the upcoming news events. Firstly the Federal Reserve is going to hike interest rates and could by 75bps. However, investors will be looking at the language the Federal Reserve Chairman Powell uses in his press conference to identify if the Fed plans to slow down the pace in which they tighten. If they do this could be seen as a negative by investors and the USD could trade lower. However, if the Fed plans to hike rates aggressively then this would see the USD continue its bullish path.
As we can see from the weekly time frame the price is trending within a bullish channel. If the price remains bullish within this channel then we could expect a move to the recent highs and channel highs around 114.50.
However, if investors take the news negatively then the price is more likely to break out of the channel support and below the support of 110.00 then we could anticipate a further move towards the 108.00 lows.
Did you see our EURAUD? You can see it here.
Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you from your quick account setup to any future concerns. Start trading with Blueberry Markets today.