The USD is Strong

The USD in Breakout Mode: Next Level

Posted Wednesday, August 15, 2018 by
Rowan Crosby • 1 min read

The USD continues its form that started on Friday last week and has made fresh new highs in trade yesterday.

There have been a number of drivers that are pushing the USD up. And at the moment it appears the fundamentals and technicals are nicely aligned.

Fundamentally, the Greenback is on the rise in line with an improving economy. We should see two further rate hikes this year and that will continue to keep the USD on a path higher.

Meanwhile, there have been some concerns around the emerging markets as the Turkish economy has found trouble. In times of crisis, the USD acts as a safe-haven currency and this attracts buyers.

Technically speaking we had been looking at an ascending triangle which has now broken out. We’ve made fresh highs and levels are holding.

 

The USD is Strong

The resistance level at 96.50 is now support and it is the one to watch in trade on Wednesday.

The next major level that we are going to look to test is probably 97.50. Which is an area that we touched around 12 months ago.

We spiked through that point and it wasn’t a clean high as such so we will have to see what the price action is like.

In fact, the 97.50 level was a pullback area in a down-trending market. So let’s see how this plays out. Nevertheless, our bias remains bullish.

DXY
DXY – 240 min.
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Rowan Crosby is our Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
Related Articles
eToro announces a significant cut in spreads on cryptoassets to increase awareness of the potential of crypto and blockchain more broadly
SPONSORED
Comments

Leave a Reply

avatar
  Subscribe  
Notify of