Intraday Market Thoughts

Monitoring Rising USD Patterns

by Ashraf Laidi
Mar 9, 2017 18:00

As we approach Friday's US jobs report, deemed by some as instrumental in determining the already surging odds of a Fed hike next week (and by others as irrelevant), here are a few USD notes worthy of consideration. The 6-currency basket USDX is entering its 5th straight consecutive weekly gain, the longest string of rallies since the 6-weekly gains seen on Dec 2014-Jan 2015 when the Fed ended QE3.  Interestingly, we haven't had many uninterrupted weekly USD gains. Here are the most recent ones.

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Monitoring Rising USD Patterns - Usdx Gains Mar 9 2017 (Chart 1)

The above pattern suggests that gains of more than 6 weeks in a row are relatively rare. Bearing in mind that next week's Fed meeting coincides with a possible 6th weekly gain, could the USDX top be attained next week? Also, keep in mind that the USDX reached topped out 1 day after the December Fed hike. What does this mean for our directional and tactical trades? Find out here.

 
 

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