Ticker tape by TradingView

July 13, 2021

Dollar Is Strong Again, Time To Buy?

Frank Cabibi

7/13/2021

The US's consumer price index was much higher than expected in the month of June at 0.9%, the largest monthly rise in inflation since 1981. Signs of a weakening dollar is still pumping demand into the USD and the stock market as far as this morning, and volatility is expected for the rest of the day for USD pairs. Compared to other major countries, the US has the highest inflation at 5%.

Our outlook

As inflation rises, investors look to the Fed to tell us what they expect to do with their current monetary policy. A higher CPI means that we could see a rise in interest rates- or in this case- more than two hikes by 2023. Odds are that the Fed will continue to downplay inflation and the dollar could come back down. However, it would be bullish for the dollar if Powell promises more hikes or sooner-than-expected hikes. We will have to wait for what the Fed decides to do in their testimony tomorrow. Overall, this news is probably not as bullish for the dollar as it is gold since a weaker dollar is all investors see right now. Speculation of more hikes is still speculation.

Trade Setups

DXY

The dollar index already showing major rejection from the highs for the day and possibly forming its right shoulder in a head and shoulders pattern. Support is at around 92.32 if price can't hold itself up for the day.

USDJPY

UJ is coming way off highs for the day after a major spike in the USD pairs. Price is coming down to support after failing to close above resistance. Support lies under at its 200 SMA on the 4H chart and further support around 109.786.

USDCAD

UC is still in an uptrend from June, and price is up 0.47% on the day. The pair does look like it's pulling back from the highs, and major support is at 1.24867 if price continues to dip.

A1 Edgefinder

FLASH SALE
Take 40% off the Edge finder using code "READER"
GET ACCESS NOW

want to see what we're trading?

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
A1 Trading Podcast
We Like These Pairs For Next Week

As this week comes to a close, we are looking ahead at future setups that could be some of the best opportunities for the next several trading sessions. Here are some pairs for next week that we are looking at. EUR/JPY Recent data has shown a slow down in the German manufacturing sector. With European […]

Read More
More Downside On The SPX500 After This?

When it comes to testimonies, it's all in how you say it. Jerome Powell has to be very particular in the way he makes his statements and answers the ensuing questions. Here is what might be in store for the market in the coming days and weeks, and whether or not there will be more […]

Read More
More Upside For Yen After This

The historically 'safe' currency to hold in times of recessions is in a unique situation now with a couple factors in place. Here is why the yen is stronger today as well as some trade setups that could push its value either up or down. Weaker Yen Now, Stronger Yen Later The Bank of Japan […]

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
homescreensmartphone linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram