A1 Trading Company

Ticker tape by TradingView

January 18, 2022

A USD Surge Is Coming

Frank Cabibi

It is likely we see a USD surge in the near future as we get closer to the Fed meeting in March. Bond yields hit yearly highs this morning as the dollar begins to look stronger. A prominent "risk-off" attitude in the markets is showing now, and it looks like investors will be getting out of stocks and gold in the anticipation of higher interest-yielding bonds. Goldman Sachs (GS) reported a miss in earnings sending the company's stock down by 8%.

What To Do About This USD Surge

Because investors will be pricing in these moves ahead of time, the dollar will probably continue to gain up until the March meeting. The heat map indicates increased volatility on all USD pairs as we expect rocky trading sessions in the meantime with a bullish favor towards the dollar. If you are invested in the stock market, I would not say to sell out of your positions, rather make sure that you have enough cash on the side and look to pad your accounts with potential USD longs.

So, with risk-off sentiment, higher rate expectations, and a rough start to stock earnings, USD looks like the better play this week at least as we inch closer to the Fed decision day.

Pairs To Watch

USD surge
USDCHF comes back above the rising trend line and pushes above the 200 DMA after bouncing from support in the 0.91060s. The pair is facing more resistance above at 0.92122.
USD surge
USDJPY looks like it could test resistance around 115.400s although its recent candle looks bearish as of now. With a support zone and 50 DMA just below price, the pair could bounce back to test if price continues lower today.

These pairs look especially strong as we expect little to no monetary policy for the yen and a weaker franc this week after it missed PPI expectations.

A1 Edgefinder

#1 Market Scanner Tool
Take 10% off using code "READER"
GET ACCESS NOW
Want to See Our Trades?

Join The VIP Community!

Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Exclusive Trading Guides
Use Code "READER" for 10% OFF!
JOIN NOWJoin FREE Discord
Listen to More Episodes
Get Ready for the Bear Market

Last week’s selloff was brutal for investors in the US stock market: the Dow Jones Industrial Average closed at its lowest level since late 2020, falling to 29590.41, losing 1.6% on Friday alone. With the S&P 500 currently down a whopping 23% from January’s highs this year, and other indexes close behind percentagewise, stock market […]

Read More
Why the New FOMC Decision Matters

Yesterday, the Federal Open Market Committee (FOMC), the Federal Reserve’s policy-making body, implemented yet another 75 basis point interest rate hike. While this move was perfectly in line with market forecasts, Chair Powell’s comments following the subsequent press conference, in which he discussed the FOMC’s new set of economic projections, were significant. He continued to […]

Read More
Shocking CAD Inflation News

Statistics Canada released a surprising new batch of inflation data this morning: month-over-month CPI failed to meet market forecasts, declining by 0.3% instead of the anticipated 0.1%. Rather than being an outlier, the other measurements of CPI mostly followed suit, as both year-over-year Trimmed CPI and Median CPI likewise failed to meet expectations. Trimmed CPI’s […]

Read More
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
VIP
Menu
homesmartphonelaptopmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram