US Dollar Rally Continues to End Trading Week

Talking Points:

• The

  US Dollar

  Rally Continues to End

• The

  USD/JPY

  Advances 393 Pips From High to Low

• Looking for additional trade ideas for the US Dollar?

  
  Read O
  
  
  ur
  
  
  Equities Market
  
  
  Forecast
  

It has been a drama filled week for US Dollar traders. This week’s trading has ultimately been driven by a 0.25%

rate hike

from the Fed, and a promise for up to 3 more hikes may continue to drive the US Dollar into 2017. Technically, the short term trend for the US Dollar Index (Ticker:DXY) remains pointed higher with

prices

again trading back above the 10 day EMA (Exponential Moving Average). This line is found at 101.80, and will remain as a value of short term support in the final weeks of 2016 trading.

US Dollar Daily Chart and Averages

(Created Using TradingView Charts)

US Dollar pairs to watch next week include the

USD

/

JPY

,

USD/CAD

, and

NZD/USD

. The USD/JPY has lead the way on US Dollar strength, and has rallied as much as 393 for this week’s trading. Also commodity currencies have taken a hit, with many pairs turning on this weeks Fed news. The USD/

CAD

has been put in focus for its daily bounce off of the 200 day SMA (simple moving average). This strong bounce has signaled a potential price reversal back in the direction of the daily trend. Now the pair remains above its short term 10 period EMA, also signaling that short term momentum is turning bullish.

US Dollar Daily Chart and Averages

(Created Using TradingView Charts)

In the event that the current US Dollar trend turns, traders may continue to look for classical technical signals. This includes indicator divergence, coupled with lower lows, and a move below the 10 period EMA for the DXY. In this alternative scenario, traders may adjust their short term perspective on the market but should always remain aware of the still ongoing US Dollar primary trend.

See the above video for a full technical review of the DXY Index,

EUR/USD

, USD/JPY, USD/CAD and More!

Want to join in on the next Day Trading Markets event?

Register HERE

To Receive Walkers’ analysis directly via email, please

SIGN UP HERE

See Walker’s most recent articles at his

Bio Page

.

Contact and Follow Walker on Twitter @WEnglandFX.