Important day for the USD
Wednesday was a bit nervous for the USD. During the first part of the day, we could experience a significant weakness of the Greenback and the second half of the day, brought us a proper rise in the value of the American currency. Thanks to this, DXY, Dollar Index is giving us a sweet buy signal. A positive approach is based on the fact that the price bounced from the long-term up trendline and denied the H&S pattern. What is more, we are very close to breaking the upper line of the wedge. The sentiment is positive.
A similar setup can be seen on the USDCHF chart, where the price created the Head and Shoulders pattern. The neckline was broken yesterday but now we all know that it was a false breakout. That should result with a further rise. When trading on the USD today, do not forget about the FOMC later this evening.
One of the most impressive upswings yesterday could be seen on the American stocks. In this video, we are showing you the SP500, which managed to break the neckline of the iH&S formation. What is more, we additionally came back above the up trendline. The short-term momentum is extremely bullish but the same happened here at the beginning of the year so a further mid-term slide is still on the table.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis