Last week was a busy one across the board for worldwide markets. US equities continued to rally, after the increased volatility. And since that point, the USD had been on an upward trajectory, but it started to fall back away.

That was until last Friday when strength came back in. That could have been some covering heading into a long weekend in the US. Monday is the Presidents Day holiday. Or it could be the start of more upside to come.

On the data front, we have some important releases this week that will shape the direction of the Greenback. Most notably the FOMC minutes. A rate hike in the US is all but a certainty in March and that should mean longer-term upside ahead in the USD

USD Facing Resistance

The USD is facing quite a bit of technical resistance, as it attempts to scale the highs. Of course, a rate hike would make light work of it, that fact already appears to be priced in.

As such we will need to navigate some rough waters this week. 89.50 is the first area of interest. Above that, we have 90.50. This is a range that will sort out just how much upside strength we have in the short-term.

It’s been hard going so far for the Greenback, so I don’t really expect a big breakout. Longer-term I’m very much bullish on the USD.