Forex Field Guide for US Dollar (SEP 2022)

Reference guide covering Fundamental, Sentiment and Technical factors of the USD

TECHNICAL ANALYSIS

Last year in 2021, the value of the USD climbed 6.38% as it moved from $89.90 to $95.70 which was in opposition to the trajectory which turned bearish during the early part of the year when the 50 day moving average fell below the 200 day. The momentum turned bullish in December when the currency value climbed above both moving averages and has rocketed higher ever since.

This year, the momentum remains bullish which is now in alignment with the trajectory which turned bullish in May. This indicates that the upside resistance area at $109.7 is being targeted which was previously tested twenty years ago in September 2002.

Trading Economics forecasts a more valuable United States dollar: $110.0 in Q3; $111.2 in Q4; $112.4 in Q1.

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SENTIMENT ANALYSIS

FED RATE HIKES NARRATIVE (March 2022-present)

What’s Happening? | The Federal Reserve began a hiking cycle in March 2022 to combat rising inflation. Volatility occurs as the sentiment changes depending on how aggressive market participants forecast the hikes will be.