A1 Trading

A Look At USD Before Powell Testimony, Things To Consider

August 17, 2021
Frank Cabibi

8/17/2021

Before Powell's testimony today, I think it would be important to take a look at what we already know and what we could expect, as well as what to look out for in the latest coverage of the outlook of the USD.

Our outlook

In this testimony today, we will need to look out for whether Powell still thinks inflation is transitory or perhaps more persistent and ongoing than it was originally expected. US's CPI numbers gauge short term inflation, and if inflation ends up sitting at 4%, the likelihood that the Fed will exercise tighter monetary policy is greater, according to an article from The Hill. If the Fed is showing concern towards the mounting inflation and hinting at the potential raise of rates, USD will probably jump in price.

Trade Setups

DXY

The USD is up today as price is testing a double top around 93.110. Momentum looks strong today which means investors might be anticipating a more hawkish stance by the Fed. Support lies below in the 91.500s.

USDCAD

USDCAD is up today as well as the pair is touching resistance around 1.26462 on the 1D chart. Price is still in its long term consolidation zone, but it looks like the pair wants to test the top once again. The latest candle has broken above the 200 DMA which could be a bullish sign should it close above this level.

AUDUSD

AU fell lower this morning as the buck is starting to look much weaker than the dollar in terms of an economic and monetary standpoint. New resistance is around .73083 which price will likely have trouble coming back to regardless of Powell's testimony today. The obvious and strong downtrend indicates that we will probably see further downside in the future.

The EdgeFinder

All-in-one Fundamental Dashboard

30 Days Access

Free Telegram

Join for daily analysis and trade setups!

Join Telegram

DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
Signals

A1 Trading Company

A1 Trading is a leading financial analysis and trading education company dedicated to empowering traders of all levels. Our team combines extensive market knowledge with cutting-edge technology to provide valuable insights and tools for traders worldwide.
2024 All Rights Reserved | A1 Trading Company
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
homesmartphonelaptop-phonecross-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram