Following the USD

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It’s only natural to follow the USD theme as yesterday we were witnessing USD/CAD threatening to tuck back inside the bullish channel running in the direction of the higher time frame trend.

USD/CAD hourly

USD/CAD hourly

USD/CAD daily

USD/CAD daily

With the daily chart there for context, you can see how yesterday’s price action on the hourly chart was with a lower time frame re-test of previous resistance as support, giving multiple chances to get lo

The level has the added allure of being at that confluence of support formed by the intersecting trend lines that you can see.

Ticking through our MT4 platform‘s USD watchlist to USD/JPY, a chart we have been watching hover around its lows as the Fed lacked conviction.

Ah how the narrative, and most importantly price, can change so quickly!

USD/JPY daily

USD/JPY daily

As you can see on the current daily chart, USD has got its act together on the threat of impending interest rate hikes from the Fed and price has rocketed straight up to channel resistance.

USD/JPY 4 hours

USD/JPY 4 hours

If you’re REALLY keen, this is also the 50% retracement level from the helicopter money threat high.

I’m not really a fibs guy myself, and my USD bullish bias sees me leaning toward playing the breakout on this pair. A strategy that the USDX chart, still nowhere near resistance after getting the bounce off support, supports.

USDX daily

USDX daily

Plenty of room to reach for the next levels of resistance.

Happy to keep my long USD bias into NFP and these two featured pairs look like a good place to make a play.

This Thursday

CNY Manufacturing PMI

AUD Private Capital Expenditure q/q

AUD Retail Sales m/m

CNY Caixin Manufacturing PMI

GBP Manufacturing PMI

USD Unemployment Claims

USD ISM Manufacturing PMI

Take advantage of the market narrative on a Forex trading account with Vantage FX.

This is a guest post originally appeared on Vantage FX. Reposted with permission.

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