Global macro overview for 01/03/2017:
Interesting remarks from two FED policymakers were released yesterday. The remarks from William Dudley from New York and John Williams from San Francisco FED were very hawkish. Dudley – a permanent voter on the FOMC – claimed the case for tightening is now a lot more compelling, while Williams –who does not vote until next year – claimed a rate increase is up for "serious consideration" at the meeting this month. In conclusion, after these remarks, the implied rate hike odds from Reuters is at 66% this month and the US Dollar is being bought all over the board.
Let's now take a look at the US Dollar technical picture at the H4 time frame. The price is trading just below the important technical resistance at the level of 101.77 and the break out higher seems to be imminent. Please notice that if this level is violated, then the next important technical resistance is at the level of 102.97. On the other hand, only a sustained violation of the level of 100.66 would invalidate this bullish view.
