USD Index Slumps During Powell Testimony
At about 9:00 AM EST this morning, day two of the Jerome Powell Congressional testimony was scheduled to begin.
Day one of Jerome Powell’s Congressional testimony was not kind to the Greenback. Powell reinforced the FED’s dovish tone while alluding to “patience” being the key to a successful 2019. March USD Index futures took his comments poorly, as rates fell beneath 96.000 for the first time in three weeks.
Today marks the conclusion of the FED Chairman’s trip to Capitol Hill. From a practical standpoint, anyone long the USD has to be relieved. Since Powell took the stage Tuesday morning, bearish sentiment toward the Greenback has dominated trade of the forex majors.
Powell Back In Front Of Congress
At about 9:00 AM EST this morning, day two of Powell’s testimony got underway. Today’s engagement will feature questions from the House Financial Services Committee. It is expected to be contentious, with several freshman members looking to make names for themselves. While the markets are likely to ignore the noise and political overtones, it will be necessary to keep an eye on the developments from Capitol Hill.
++2_27_2019.jpg)
The March USD Index is under significant bearish pressure. If we get a bullish bounce today, a short from one of these topside resistance levels may come into play:
- Resistance(1): Daily SMA, 96.115
- Resistance(2): Bollinger MP, 96.205
Bottom Line: For the remainder of the session, I will have sells queued up from 96.105. With an initial stop at 96.225, this trade produces 25 ticks on slightly greater than 1:1 risk vs reward management plan.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals