All eyes turn to US at 3:00pm GMT as Federal Reserve Chair, Janet Yellen testifies to Congress.
After rallying hard during the back half of 2014, the USDX has gone into consolidation mode waiting for the signal as to when the Fed will finally begin to raise rates again.
Whether Yellen comes across more upbeat about the labor market in her speech is key and market chatter seems to revolve around using the word ‘patient’. It is being assumed that the removal of the word will all but guarantees a rate hike in the middle of 2015.
Some softer than expected recent economic data is capping a proper preemptive breakout but that’s what the market wants so I’m happy to try and set myself up to be on board.
Price is capped by that 120.00 psych level and that’s pretty much the key here. My play is to try and again get through that level on a sustained breakout and see what happens from there.