Traders Left Scratching Their Heads after Yellen’s QA Sessions

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June Hike Door is Open, but Don't Expect the FOMC to Walk Through

After 2 days of questioning by congressional members, Janet Yellen offered no material clues on when the Fed will raise rates. Those waiting for this event to provide clues for USD-direction were left disappointed. Let’s take a look at the the USDX and USD/JPY charts.

The US Dollar index is at an interesting juncture after a rally in May. It has completed an ABC correction, or in Gartley terms it has completed an ABCD retracement pattern to 61.8% retracement level. The RSI is overbought in the 4H chart. It looks ready for a bearish attempt. The USD/JPY was left stuck in the middle of a falling channel. There is nothing that suggests June’s falling trend won’t continue, UNLESS price pushes above 102. Otherwise, the downside risk remains toward the low on the month around 101.10, then the 100.75 low on the year.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.