Markets on Tuesday: Calm Before the Powell Storm
Rowan Crosby • 1 min read
It was a relatively quiet start to the trading week, as investors played wait and see. Much of the attention this week is going to be on what new Federal Reserve Chairman Jerome Powell has to say when he fronts Congress.
That was clear by the way in which the USD ended the session virtually unchanged. There were big moves elsewhere as US equities continued to rebound strongly after the big volatility spike we saw earlier in the month. Crude Oil also jumped higher as the bull market seems to be in full swing.
Bitcoin lives to fight another day as we had a nice bounce and we are now back above 10,000. If we can’t hold this level then there might be some serious fireworks ahead in the crypto space.
Where to for the USD?
As mentioned the USD didn’t do a heck of a lot on Monday as traders wait for the big news that is rolling out over the course of the week. Resistance at 90.00 on the DXY is still holding strong.
However, as we get some fundamental news flowing, I suspect the technicals won’t hold in the short-term.
That said, 90.50 and 88.50 are important levels in my mind as they are the extremes at the moment. If we can break out in either direction then that will be what dictates trend. As I’ve said before I’m still long-term bullish on the Dollar for the time being.
US Dollar Index (DXY)- 240 min Chart.