August 26, 2021

Jackson Hole Symposium Props Up USD- How To Trade This

Frank Cabibi

8/26/2021

Financial authorities from around the world met up today in an all-day event where they will discuss monetary policy going forward. These closed-pressed meetings are eventually leaked to the public as officials are admitting to a higher-than-expected inflation on the USD. Esther George, Kansas City Fed president believes that it would be better to start tapering sooner than later. More talks of reducing the Fed's balance sheet is another thing being talked about.

Our outlook

We can expect volatility today in the forex market today and tomorrow as investors try to interpret these comments and stances toward monetary and fiscal policy in the US. 2022 seems like the year when the Fed will start taking action on tapering according to different analysts' expectations. Powell has been signaling to taper for quite some time now unlike the events of 2008 with Ben Bernanke who didn't give investors a warning, so this time, investors are able to adjust to the sentiment and expectations going into 2022. The dollar may start to see further strength going into next week too.

Trade setups

USDCAD

USDCAD on the 1D chart is up today on a miss in GDP expectations. Price came back to a rising trend line before catching some support which seems like a strong level to keep price up. 1.24882 is additional support if price falls lower.

USDJPY

USDJPY on the 1D chart came up to its 50 DMA after bouncing off a rising trend line paired with support at 109.600. More resistance hovers at 110.488 where there is a triple top. Should that level get broken, there is more resistance above at the highs of 111.600.

AUDUSD

AU came all the way back up to resistance on the 1D chart around .72907 and is beginning to retrace. As the buck still seems weak compared to the USD, we might see a lower low after this to below the previous bottom, and price might touch support around .70236.

A1 Edgefinder

Watchlist
Save time looking for setups with the EdgeFinder's watchlist! In a glance, see the EdgeFinder's current top buys and top sells.

Discount code: 'READER'

Access Now

Free

Trading Plan Template
Struggling to build a successful trading plan? Download our template to get started today!
Download
Trading Gold & USD Before NFP

Gold is up nearly half a percent today while USD down a third of one as of 10:18 am EST. As we wait for the upcoming and looming NFP numbers this Friday, we can assess the economic data we already have. EdgeFinder Analysis The stock market sighed in relief after the debt ceiling bill finally […]

Read More
Can The Dollar Break This Pivotal Level?

The dollar flew higher last week as a result of resilient economic news along with a higher PCE than expected. Now the DXY has reached a decision point in price action. This week's NFP will help determine the sentiment around the potential June rate hike. Here is what we are looking at: EdgeFinder Analysis USDCAD […]

Read More
Dovish Banks Could Crash These Currencies

Considerably dovish news from central banks in the US and New Zealand has caused a major stir in the markets. Governor Orr and Vice Chairman Powell both released some reassuring news for the economy in the long term. But what does this mean for USD and NZD? EdgeFinder Analysis GBPNZD is a pair that should […]

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
homesmartphonelaptop-phonemenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram