Jackson Hole Symposium Can Turn USD Upside Down

Jackson Hole Symposium Can Turn USD Upside Down

2021-08-26 • Updated

Jackson Hole Symposium, which will take part in Wyoming, will make a significant effect on the global markets.

What is going on in the world?

During the past week, coronavirus concerns eased as China succeed in fighting coronavirus and many vaccine producers reported positive results for the latest tests. Oil gains as community await global economy recovery and first countries (New Zealand and South Korea) began coronavirus stimulus tapering. These facts tell us that the global economy is ready to recover, and governments will start to minimize COVID-19 stimulus one by one soon.

Economic Policy Symposium, held in Jackson Hole, Wyoming, is attended by central bankers, finance ministers, academics, and financial market participants from around the world. During two upcoming days' markets, the community might get information about the US future monetary policy. According to the global trend, we might get some information about upcoming US economic stimulus tapering which will put some pressure on the global market.

In this article, we will look at the US dollar index and try to predict what global markets trend will this meeting set.

Technical analyses  

US dollar index, Daily chart

Screenshot_2.png

On the daily chart, a double bottom pattern occurred with the target at 97. Also, it is noticeable that 2020-2021 and the 2017-2018 price movements look similar (strong downtrend, correction around 92-93 range, another drop, consolidation, and finally uptrend).

US dollar index, Weekly chart

UsDollarWeekly.png

On the weekly chart, we can see that the price stuck above 93 for the first time since the beginning of November 2020. At the moment it is testing this big resistance level from the above and if by the end of the week US dollar index will be higher than 93, the double bottom pattern will be confirmed.

US dollar index, 4H chart

UsDollarH4.png

On the 4H chart, the US dollar index has formed a falling wedge pattern, which is bullish. The main support level is 92.8. If the price holds this level and breaks the falling wedge, we will get a massive pump to 93.16 and 93.7 resistance levels, which will be the start of a strong US dollar uptrend towards 97. Otherwise, the whole story might be declined, and the US dollar will get weaker during the next weeks.

Conclusion: 

The charts look interesting ahead of one of the main evens for the US economy.

There are two main conditions for the US dollar pump:

  • US dollar index breaks the upper line of the falling wedge.
  • It closes this week above 93.

Since the US dollar index is not available to trade with FBS, you can trade major currency pairs (EUR/USD, AUD/USD, USD/CAD and etc.) according to this information.

TRADE NOW

Similar

How will the reporting season affect US indices?
How will the reporting season affect US indices?

Earnings season is a crucial time for investors and analysts, as it provides insights into how well companies have performed over the past quarter and gives indications of their future earnings. In 2023, expectations for US Q1 earnings were low due to economic challenges and rising interest rates. Surprisingly, many companies beat these low expectations, with 75% of S&P 500 companies surpassing forecasts.

Stocks to trade in July
Stocks to trade in July

When I started trading stocks a few years ago, I often needed to pay more attention to my technical analysis skills and trust that the market would play fair according to my analysis. I have since discovered that the safer approach to trading stocks is to, more often than not, seek out investing opportunities - that is, catching stock commodities with a potential to rise.

Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

 1
 93
 355
 213
 1684
 376
 244
 1264
 672
 1268
 54
 374
 297
 61
 43
 994
 1242
 973
 880
 1246
 375
 32
 501
 229
 1441
 975
 591
 387
 267
 55
 246
 673
 359
 226
 257
 855
 237
 1
 238
 1345
 236
 235
 56
 86
 61
 61
 57
 269
 242
 243
 682
 506
 225
 385
 53
 357
 420
 45
 253
 1767
 1809
 593
 20
 503
 240
 291
 372
 251
 500
 298
 679
 358
 33
 594
 689
 241
 220
 995
 49
 233
 350
 30
 299
 1473
 590
 1671
 502
 224
 245
 592
 509
 39
 504
 852
 36
 354
 91
 62
 98
 964
 353
 44
 972
 39
 1876
 81
 962
 7
 254
 686
 850
 82
 965
 996
 856
 371
 961
 266
 231
 218
 423
 370
 352
 853
 389
 261
 265
 60
 960
 223
 356
 692
 596
 222
 230
 262
 52
 691
 373
 377
 976
 382
 1664
 212
 258
 95
 264
 674
 977
 31
 599
 687
 64
 505
 227
 234
 683
 672
 1670
 47
 968
 92
 680
 970
 507
 675
 595
 51
 63
 64
 48
 351
 1787
 974
 262
 40
 7
 250
 590
 290
 1869
 1758
 590
 508
 1784
 685
 378
 239
 966
 221
 381
 248
 232
 65
 421
 386
 677
 252
 27
 500
 34
 94
 249
 597
 268
 46
 41
 963
 886
 992
 255
 66
 670
 228
 690
 676
 1868
 216
 90
 993
 1649
 688
 256
 380
 971
 44
 1
 1
 598
 998
 678
 58
 84
 1284
 1
 681
 2
 967
 260
 263
00:00
00:00
00:00
01:00
02:00
03:00
04:00
05:00
06:00
07:00
08:00
09:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
23:00
23:00
00:00
01:00
02:00
03:00
04:00
05:00
06:00
07:00
08:00
09:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera