US dollar grinding higher as Yellen comments read by the market as a hawkish tone and signaling more rate hikes.
Key takeaways from Fed Chair Yellen overnight speech.
” At our upcoming meetings, the Committee will evaluate whether employment and inflation are continuing to evolve in line with these expectations, in which case a further adjustment of the federal fund’s rate would likely be appropriate”.
“waiting too long to remove accommodation would be unwise, potentially requiring the FOMC to eventually raise rates rapidly, which could risk disrupting financial markets and pushing the economy into recession.”
“The Committee’s view that gradual increases in the federal fund’s rate will likely be appropriate”
USD index- The dollar index grinding higher to 50Dsma, rose for the fourth straight day. From the low’s (Feb2) the USDX index rose seven days out of nine.
Resistance: 101.75, 102.10 and 102.50
Support:101, 100.50 and 99.90
The price is facing resistance at 50Wsma 101.40 above this 101.75 and 102 exists. Fails to handle 101.75/102 might draft a h&s pattern on the daily chart.