There are has been a massive confusion in the financial market as the investors are not certain regarding the next movements of the green bucks. Most of the leading investors are now in fear as the U.S economy is totally unpredictable under the new administration of Mr. Trump. The recent performance of the U.S economy compared to the last two weeks is pretty stable and this has given the dollar bulls some hope in the market. However, the chaos still remains in the forex trading industry as no one certain that the FED will hike their interest rate on the upcoming FOMC meeting minute. If FED chairperson Janet Yellen comes up with a solid plan than an imminent rate hike will push the dollar higher against the major rivals in the global market. The U.S dollar index which is the over the value of the green buck’s strength traded at 97.22 in the global market. There are plenty of support just below this level which gives the optimistic dollar buyers strong hope in the market.
Strong bullish run in the Aussie dollar: The Australian economy is doing pretty well from the very beginning of the year 2017 and this has caused a long bullish rally in the AUDUSD pair in the global market. The pair found some strong support near 0.7330 level and continued its bullish rally in the forex trading for 2 consecutive weeks. Most of the leading investors made a decent profit in the last week as the price respected the 100 days moving average on the daily chart. Though the recent bullish rally in the AUDUSD pair has turned the initial bias slightly bullish the market has exhausted after hitting the critical resistance level at 0.7516 near the 200 days SMA on the daily chart. Some of the optimistic dollar bulls are considering it as a strong indication that the green bucks will gain strength in the global market in the upcoming FOMC meeting minutes.
Currency market overview: The market has ceased its volatility to a certain extent as the expert investors have already closed their open position in the market prior to the high impact major’s news release in the U.S economy. The EURUSD pair retreated back from its six months high at 1.1268 level and traded at 1.1186.Such a strong rebound prior to the high impact news release clearly indicates something drastic is going to happen in near future in the forex trading industry. Though the EURO has lost its ground to a certain extent in the global market still the dollar bears are in a good position as Mr. Trump interfered with the FBI regarding the U.S presidential issue. On the contrary, the Great Britain pound continued its correction in the global market and gained near about 0.27 percent. The Aussie dollar went down by 0.12 percent in the global market from critical resistance level and the investors are thinking that market will again dive in favor of the long-term bearish trend in the forex market with the FED interest rate hike.
Summary: This week is going to play a major role in the next possible movements of the major currency pairs in the market. Though the green bucks were under extreme selling pressure in the global market the recent turnaround from the mighty dollar prior to FOMC meeting minute has created sensational fear into expert investors in the global market. FED has already projected three possible interest rate hike this year out which one is already been implemented in the market. Janet Yellen will try her best to hike their interest rate before the month of June for the second time to avoid the extreme pressure from the U.S central bank as they require imminent rate hike to adjust the current inflation rate of the U.S economy.