An interesting morning for traders so far, with the London session well under way, and what is perhaps revealing is the continued rise in the US dollar intraday, with no evidence of a pause ahead of the Non Farm Payroll release due later. Indeed, there have been some excellent moves in a variety of currency pairs, not just in the majors, with the US dollar continuing its march North with renewed energy. The congestion phase of January and February is now well and truly consigned to history, with Wednesday’s pivotal price action triggering the breakout through the ceiling of resistance in the 95.80 area on the daily chart, as shown with the blue dotted line. Yesterday’s price action merely confirmed the very bullish tone now in place for the US dollar, with this morning’s trading session taking the index higher once again to currently trade at 96.67 at the time of writing.
The extended congestion phase of January and February was no great surprise following the meteoric gains of 2014, and with this period of price action now complete, expect to see the index rise, with the solid platform of support now in place below. With little in the way ahead in terms of technical resistance, we can expect to see the USD index hit the magical 100 level in the longer term.
By Anna Coulling