The US dollar recovered the losses it suffered in the previous trading session after Fed Chairman Powell's Speech indicated that the monetary policy needs to be tight for some time in order to control high inflation; the USD is up across all major forex pairs in the session while the stock market falls.
With the expected interest rate hikes, the US economy is likely to slow down, which will affect the labor market and the growth rate. A 50 or 75 basis point is what experts are anticipating for the September 21st interest rate decision.
The general trend continues to be upward as the short and long-term moving averages trend lines are below the current price. We identified a strong resistance level at 1.30631, which is the previous high in more than one month.
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The price is trading inside the Ichimoku cloud, which often suggests market uncertainty; however, the price is very close to exiting the cloud with the upwards movement of today’s trading session.
The Bollinger bands are wide and moving upwards, suggesting that the uptrend will continue in the short term, the price is trading closer to the upper band, but as the band expands, it will allow the price to continue climbing.
The relative strength index is at 57%, which will allow the price to move upwards for a while before entering an overbought status. Our parabolic SAR indicator suggests that the price will continue moving upwards.
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