Did you miss our exclusive FOMC analysis? Check out Technical Outlook Edition #25 before reading further…
Powell’s about-face on underscored by his hawkish statement generated a shockwave, fuelled by the dot plot expectations of two interest rates hikes during 2023 – as opposed to his previously dovish outlook of unchanged rates until 2024.
Take a look at the chart below, where we’ve included the and forecasts for the Dollar Index .
At this point, our regular readers might now be thinking…
Is this the beginning of a multi-wave US Dollar rally? Or is this nothing more than just a squeeze against the bears who short (sell) USD more than any other asset in the markets currently?
Remember, the DXY is negatively related to nearly every other asset traded in the financial markets…
As the greenback (USD) strengthens, other assets weaken.
Patience is more than just a virtue; it can also protect your capital.
Remain vigilant for overtly aggressive dip-buying during tonight’s European and US trading sessions, where the $DXY decisively rejects the .618 fib retracement level.
It may be wise to reduce intended entry sizes and staggering orders until we confirm either a USD reversal or a short squeeze.
See you again for the next update.
Business News Governmental News Finance News