A mixture of data came out today, which were all close or higher than expected. Although I’ve been screaming out Dollar bull all week, I think the new week will definitely give a fresh boost to the Dollar. The first to fall was AUD/USD, and EUR/USD, GBP/USD got a new rejection at the top, while other dollar pairs look ready to bounce. The FOMC pressure scheduled for Wednesday will definitely give the dollar some boost. My only fear is that the outlook on Fed’s plan after the first hike will be dove; which will create a whole mess in it’s own. With the Dollar’s recent bearish behavior, I wouldn’t be surprised if the bulls get demolished after FOMC’s hike, if they have a dovish demeanor.
With that said, I am holding onto my long dollar positions over the weekend. I think the dollar will have a bounce on Sunday opening and will continue till Wednesday. EUR/USD got rejected forming a double top, USD/JPY is back in 120’s and GBP/USD hit a trend line resistance. Lets go bulls!
Chart below is showing GBP/USD hitting a trend line resistance. I’m hoping the Dollar bulls to wake up next week, even if it’s just monetary.