US Greenback Jumps, Recent 2021 Excessive

US Greenback, Nasdaq 100 Speaking Factors:

The charges theme continues to drive markets and equities stay in a considerably susceptible state. That is additionally pushing the US Greenback larger because the Dollar has pushed as much as a contemporary 2021 excessive, breaking past the resistance that I had checked out on Monday.

In that article on Monday, I identified an ascending triangle formation within the US Greenback, which is commonly approached with the goal of bullish breakouts. That formation has crammed in rapidly, helped alongside by final week’s announcement from the Federal Reserve. Whereas the financial institution didn’t have a tapering announcement to formally make, they did improve their charge forecasts, warning of a possible hike in 2022 whereas the prior dot plot matrix from the Fed indicated that the primary hike may present in 2023.

That USD power was on show into the top of final week, however this week is when the theme actually got here to life as USD has continued to interrupt out from that ascending triangle formation.

To study extra concerning the ascending triangle formation, take a look at DailyFX Education

US Greenback Every day Worth Chart

US Dollar Daily Price Chart

Chart ready by James Stanley; USD, DXY on Tradingview

Tech Shares Grasp for Assist

Tech shares within the US have been very susceptible to charges themes within the US this 12 months. In Q1, when charges have been operating larger in anticipation of restoration, tech shares lagged; however once we have been seeing a decrease charge atmosphere as covid numbers began to run larger, tech shares would catch a bid and outperform.

With this warning from the Fed final week, tech shares have been on their again foot and this morning noticed the Nasdaq 100 push down to a different contemporary month-to-month low. At this level, help is holding a bit above the August low, plotted round 14,710; and the bullish channel that’s been in-place because the election final 12 months additionally stays in working order.

The subsequent help stage under the August low is the July low, plotted at round 14,445, and that is nearing confluence with the help aspect of the bullish channel.

To study extra about trendlines, take a look at DailyFX Education

Nasdaq 100 Every day Worth Chart

Nasdaq 100 Daily Price Chart

Chart ready by James Stanley; Nasdaq 100 on Tradingview

— Written by James Stanley, Senior Strategist for DailyFX.com

Contact and observe James on Twitter: @JStanleyFX

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