US-DOLLAR possible RALLY!Hey tradomaniacs,
So... the market was waiting for Powell and got the so called "Nothing Burger".
Powells Key-Notes:
1️⃣ Clear progress towards foll employment.
2️⃣ Could be appropriate to begin with tapering this year.
„My view is that the „substantial further progress“ test has been met for inflation. There has also been clear progress toward maximum employment. At the FOMC’s recent July meeting, I was of the view, as were most participants, that if the economy evolved broadly as anticipated, it could be appropriate to start reducing the pace of asset purchases this year.“
3️⃣ Dovish: The timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest rate liftoff.
4️⃣ Inflation has reached 2 percent and is on track to moderately exceed 2 percent for some time.
So what did we get here? Well the market with a drastic sell-off of the US-Dollar and indicies rallied due to the hope that liquidity will still be provided, probably because the market has expected to see tapering until Q1 of 2022 and has priced that in.
However, for me personally all this is not really a dovish, more like a mixed statement that has dissapointed US-Bulls as things are not progressing as fast as expected. If data from the U.S. are good this week we could see more US-DOLLAR bulls taking action to push price up.
I will keep it slow this today as we get to see the Non-Farm-Payrolls, which will probably have a very strong impact in the market as market-players will evaluate the probabillity of more hawkish statements in the future.
We have often see strong moves after these vacuous statements which then got reversed quickly within a few days, which is why I want to observe price-action first also because the dovish news have pushed many pairs into resistance-zones and so good spots to follow the current trends.
Example: AUD/USD 👉https://tradingview.sweetlogin.com/x/FqcCdCbO/
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Peace and good trades
Irasor
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