2.7 C
New York
Thursday, April 22, 2021

Resurrection Of The U.S. Dollar

Must read

Nuvve vs. Blink: Which EV Charging Stock is a Better Buy?

Stock Markets12 minutes ago (Apr 22, 2021 09:31AM ET) (C) Reuters. Nuvve vs. Blink: Which EV Charging Stock is a Better Buy? After an impressive rally...

Constellation Disrupts Blockchain With Revolutionary Tokenomics

Sign In/Free Sign Up 0 Cryptocurrency12 minutes ago (Apr 22, 2021 09:30AM ET) Constellation Disrupts Blockchain With Revolutionary Tokenomics Have you ever wondered what's the...

Huobi affiliate launches Bitcoin, crypto mining fund

Cryptocurrency12 minutes ago (Apr 22, 2021 09:30AM ET) Huobi affiliate launches Bitcoin, crypto mining fund Huobi Asset Management, an affiliate of leading crypto exchange, Huobi, has...

Member tells MPC Oct strategy to flatten bond yield curve a flop show

Government bond yields have continued to edge higher throughout 2021 amid concerns over a large supply of government bonds and inflation.

Wednesday was all about the FOMC, which didn’t turn out as stock traders had expected. Nothing bad happened and the FED will keep printing money but market participants got addicted to more and more stimulus that the lack of an increase in stimulus was taken as a negative factor. Or maybe that’s just an excuse for a correction? Either way, stocks will probably continue going higher. The monetary stimulus isn’t going anywhere anytime soon but the situation for the US dollar can be quite different. Here, we can sense a bigger correction underway.

To describe the situation of the dollar, let’s start with the Dollar Index, which on Tuesday broke crucial horizontal support, which in theory brought us a proper sell signal. Wednesday, on the other hand, brought us a reversal above that support and as a consequence, a false breakout pattern. Those, often result in a movement in the opposite direction, in this case it would be an upswing. Sentiment for the USD is now definitely positive.

The EUR/USD is pretty much the same but reversed. Here, the price made a false bullish breakout above the important horizontal resistance of 1.19. That gives us a signal to sell with the potential target being at 1.17

The GBP/USD is also giving a sell signal. Here it also comes from the false breakout above the crucial horizontal resistance of 1.32. In addition to the breakout itself, we see a bearish engulfing candlestick pattern and a double top formation too with a potential target being the long-term up trendline. Sentiment is negative.

Resurrection Of The U.S. Dollar

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

- Advertisement -

Latest article

Nuvve vs. Blink: Which EV Charging Stock is a Better Buy?

Stock Markets12 minutes ago (Apr 22, 2021 09:31AM ET) (C) Reuters. Nuvve vs. Blink: Which EV Charging Stock is a Better Buy? After an impressive rally...

Constellation Disrupts Blockchain With Revolutionary Tokenomics

Sign In/Free Sign Up 0 Cryptocurrency12 minutes ago (Apr 22, 2021 09:30AM ET) Constellation Disrupts Blockchain With Revolutionary Tokenomics Have you ever wondered what's the...

Huobi affiliate launches Bitcoin, crypto mining fund

Cryptocurrency12 minutes ago (Apr 22, 2021 09:30AM ET) Huobi affiliate launches Bitcoin, crypto mining fund Huobi Asset Management, an affiliate of leading crypto exchange, Huobi, has...

Member tells MPC Oct strategy to flatten bond yield curve a flop show

Government bond yields have continued to edge higher throughout 2021 amid concerns over a large supply of government bonds and inflation.

Wall St to open flat as earnings roll in; jobless claims fall

Stock Markets22 minutes ago (Apr 22, 2021 09:20AM ET) (C) Reuters. FILE PHOTO: A U.S flag is seen on the New York Stock Exchange in...