Intraday Analyzation of DXY (July '22 Pre-Monthly Close)
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It was an interesting and exciting day to say the least when reviewing the market reaction today, after the feds released critical monetary policy information regarding the global standard. With the federal funding rates remaining unchanged, and an interest rate increase that was not as alarming as rumored to be, the DXY made retreat and is currently printing in the same territory of last weeks previous low marks..
There was a lot of speculation and rumors leading up to todays federal announcements that there could have been a 100 bps (or 1%) increase in the federal interest rate, which is a rate the United States government hasn't issued since the early 1980's. (Ironically, that time was the country's worst inflation event in history.)
The rate hike was announced in the ladder half of the trading day at 75 bps (or .75%), which, lets just say, for the sake of this article, was nothing to call your brokerage firm about.
Despite sellers taking control of price action in the midst of these "red folder" announcements to close the day, there are still a couple of bright sides for traders who, like myself, who are looking for a continuation of bullish price action, whether it be sooner or later.
There is more critical information regarding the currency being announced tomorrow, July 28th. This news will also cause more volatile movement in the market. Fingers crossed that the index can remain above the marked area of support as we approach the monthly candle close. It shouldn't be a surprise if it takes some time for the market to decide its feelings about the newly released, and upcoming fed announcements. Even though there is a good possibility for a short term consolidation period, and some volatility as the week finishes, there is still plenty of opportunity for traders to extract value.
Happy trading, and good luck!
It was an interesting and exciting day to say the least when reviewing the market reaction today, after the feds released critical monetary policy information regarding the global standard. With the federal funding rates remaining unchanged, and an interest rate increase that was not as alarming as rumored to be, the DXY made retreat and is currently printing in the same territory of last weeks previous low marks..
There was a lot of speculation and rumors leading up to todays federal announcements that there could have been a 100 bps (or 1%) increase in the federal interest rate, which is a rate the United States government hasn't issued since the early 1980's. (Ironically, that time was the country's worst inflation event in history.)
The rate hike was announced in the ladder half of the trading day at 75 bps (or .75%), which, lets just say, for the sake of this article, was nothing to call your brokerage firm about.
Despite sellers taking control of price action in the midst of these "red folder" announcements to close the day, there are still a couple of bright sides for traders who, like myself, who are looking for a continuation of bullish price action, whether it be sooner or later.
There is more critical information regarding the currency being announced tomorrow, July 28th. This news will also cause more volatile movement in the market. Fingers crossed that the index can remain above the marked area of support as we approach the monthly candle close. It shouldn't be a surprise if it takes some time for the market to decide its feelings about the newly released, and upcoming fed announcements. Even though there is a good possibility for a short term consolidation period, and some volatility as the week finishes, there is still plenty of opportunity for traders to extract value.
Happy trading, and good luck!
Comment:
I should have also been more clear and addressed that the lines speculating on potential price action in between the two zones being shown here is not drawn in porportion to the amount of time that I believe its going to take for the market to move there. The speculative paths I am proposing will take less time to happen in my opinion. However, in order to properly demonstrate my idea, I had to draw it across a greater time sequence. The areas in which the speculated directions are drawn into have no relation with the time period it lines up with.
Comment:
*CORRECTION*
".. ,which is a rate hike (or increase) that the US government hasn't issued since.."
".. ,which is a rate hike (or increase) that the US government hasn't issued since.."
