US Dollar Rattles at Resistance: EUR/USD, USD/CAD, USD/JPY
2021-05-05 17:00:00
James Stanley,
Senior Strategist
US Dollar, EUR/USD, USD/CAD, USD/JPY Talking Points:
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The US Dollar is continuing to hold at the same resistance that was in play yesterday, with the recent build of a bullish trendline, highlighting how this resistance has been carrying a diminishing marginal impact. That’s allowed for the build of an ascending triangle formation which will often be approached with the aim of bullish breakouts.
At this point, the big question is whether USD bulls might get the ammunition to elicit a topside breakout, and it looked like that might be lining up yesterday when current Treasury Secretary and former FOMC Chair, Janet Yellen, opined about the possible need to hike rates in order to avoid the economy from overheating. Well, one look at markets like Lumber or Corn or Copper, or Dogecoin, and that overheating concern becomes quite obvious. But, so far the Fed and Chair Powell have remained far from that camp, leaving investors in a confounding spot of balancing between the reality of the inflation that we’re seeing with our own eyes and the claims of Central Bankers that qualify those drivers as ‘transitory.’