Markets on Wednesday: USD is Back to the Highs
Rowan Crosby • 1 min read
No one expected much new information when US Federal Reserve Chairman Jerome Powell headed to Congress. But sure enough, the market and the USD, in particular, appeared to buy what he was selling. Which was positivity on the economy.
The day was a largely bullish one, with stocks back at their highs. Included the NASDAQ shaking off a rough earnings report from Netflix. While the USD pushed into the highs.
Gold was a big mover and it continued the bear trend. Thanks in part to the strong USD.
While Bitcoin, for no particular reason, decided today was the day to get moving. It broke through resistance at $6,800 and $7,000 and is currently holding tough.
Oil held up well, despite a late build in API inventories. Which was a surprise and sets up an interesting EIA report on Wednesday.
The USD is at Resistance
The resistance level at 95.00 is basically exactly where the USD ended the day. We traded down towards 94.27 which was just a couple of ticks higher than our support level.
At the same time our trendline remains intact and all things are pointing to some upside.
Looking ahead at the key levels of interest, and 95.50 is clearly the target we have to try and break.
I’m bullish on the USD and I do expect we can keep on grinding higher. We have earnings season in full flight in the US and building permits today.