US dollar continues bullish move as rate hike still on the table

Yesterday, Janet Yellen reinforced the idea of graduate rate hikes provided that inflation continues climb to the 2% target.

This morning’s MoM core durable goods order increased 0.2% less than the 0.6% consensus, which caused the dollar to sell off slightly right now. This forced me to return some of my profits as I am still long the US dollar.

audusd1
AUDUSD 4-Hour

I shorted AUDUSD as it broke the neckline or “support” last night and expected price to continue selling off, which it did. This morning’s release caused the current bullish candle right now. Overall, this pair still seems unfazed by the core durables disappointment and it very well should be as this figure isn’t expected to be a huge damper on inflation.

For the time being, this pair will continue to remain open with two partial take profit levels.

gbpusd1
GBPUSD 4-Hour

Similarly, I’m not too concerned about this pair either as it did break through a key daily level. I do expect this pair to remain bearish from a technical standpoint. We have see a huge rally only to have this pair range for a few days signalling the end of further buying pressure. I expect a sell off especially in the short run.

eurjpy1
EURJPY 4-Hour

Yesterday’s daily candle was a doji and today’s open is a bullish bar. Seeing as if price is holding up on this relative low, I took a long entry as price broke above the previous hourly highs. The yen currently remains fundamentally bearish, which we have seen on the USDJPY pair already. Since I was too late to enter into that pair, I deem EURJPY an equally appropriate pair to place my long entry despite the bullish move hasn’t taken off in the same magnitude yet.

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