USD Skyrocketing

Daily Chart 

The US Dollar soared higher since the beginning of the Asian session until this report is released. Such rally comes as a reason of the Asian and the European markets to the Federal Reserve meeting minutes, which showed that the Fed is somehow preparing the markets for QE tapering before the end of this year, which could actually happen in December's meeting.

However, the Fed also stressed that they are still watching Covid19-Delta developments in the US, as infection rate is still increasing, and if things for even worse, the fed might delay such decision. Yet, the market is not concerned about delta yet, they are now concerned about lower liquidity by the Fed and other central banks, and therefore we are seeing a broad selloff across the board.

In the meantime, I would stand aside and watch how the US market will react today, as the current move might be a bit excessive, as the info that we got from the meeting minutes is not something new. But such move, could be a new opportunity for those who likes swing trades.

As for today, I will be watching 93.50 resistance area as it won't be easy to be broken. Another downside retracement is highly possible, which may retest the 93.0 support area, before the upside trend resumes.

Nour Eldeen Al-Hammoury