Rate hike Weakens the Dollar, USD/JPY is in danger of a Bearish break

Apple’s anticipated earnings pushed Nasdaq

Yesterday, The Feds decided on pushing through with the first-rate hike and warning that more tightening is on the way.

Even with that news, the U.S. dollar was put in another more of weakness to fall further back below the 90.00 level. While the Dollar caught a bid for the first five minutes after the release of the statement, that strength was quickly faded.

The Greenback continued to roll downhill due to Mr. Powell’s first press conference and last night’s Asian session. The dollar only started getting support around the 89.40 level, which is the same area that constitutes the March low in DXY.

Prices have since bounced up to find resistance around a prior area of short-term trend support.

The press conference after yesterday’s rate hike wasn’t just Mr. Powell’s first atop the Fed, it was his first press conference ever. To say that yesterday was a change of pace compared to previous Fed meetings.

Mr. Powell seems to brush off long-running forecasts, and this helped considering the questions that could have come from the bank’s alterations to forward-looking projections on both unemployment and inflation.

Price action in the Dollar in the latter portion of Q1 would seem to suggest that a big move is on the horizon in one direction or the other. DXY has spent most of the period in an expanding range formation, which will often show up before a decisive move.


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