USD testing key resistance after double bottom - AmpGFX

USD may be showing signs of breaking out of its medium-term downtrend, following Powell’s testimony, according to Greg Gibbs, Analyst at Amplifying Global FX Capital Pty Ltd.

Key Quotes

“In the wake of the Powell testimony, global equity markets are weaker.  While one trading session does not a trend make,  emerging market ETFs have taken a significant hit down over 2.5% in US trading on Tuesday, reversing what looks like a promising start to the week on Monday, to be trading at the low end of its range for the last week, raising the risk a break lower.”

“Emerging market currencies have similarly more than reversed their Monday gains.  More broadly, the USD may be showing signs of breaking out of its medium-term downtrend.”

“After essentially making a double bottom in recent months, The Bloomberg USD index again is testing the top of its range since mid-Jan.”