The above chart shows the weekly FXCM USDOLLAR chart. We note that the higher trough followed by the higher peak has the greenback in uptrend. The momentum of this trend is defined by the gradient of the green trendline. However, we also note higher trough2 followed by higher peak2. These two points are defined by the orange trendline. I.e. the gradient has shifted upwards as the USDOLLAR’s momentum increased. We are heading into the Jackson Hole virtual symposium and market participants are looking forward to the Fed Chair’s delivery on Friday at 2:00pm GMT. The market will be listening for clues regarding the Fed’s tapering timetable and it will be interesting to see how this chart reacts, especially in relation to the steeper orange trendline.
@VasilyTrader, this is a longer-term analysis as opposed to a trading setup. The USDOLLAR is showing strength - once it adjusts for the communication out of Jackson Hole, we will post on a lower time frame.