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

usd

Similar

Trade Ideas on September  6-10
Trade Ideas on September 6-10

Bitcoin At the end of the past week, Bitcoin broke through the big resistance level of $50 400 and reached $51 500 after the worse-than-expected US labor data…

Latest news

Facebook: Earnings Preview
Facebook: Earnings Preview

One of the largest tech companies in the US will reveal its financial results for the third quarter already tonight after the market closing! Await the release at the midnight (GMT+3).

Deposit with your local payment systems

Be on top of your game

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

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!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

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