USD Looks Set to Move Higher
The USD looks set to move higher in recent sessions. Buying pressure builds steadily. This reflects renewed dollar strength. Traders watch for continuation across majors.
In the current media speculation surrounding the impact of the PBOC decision to revalue/devalue the yuan, particularly on how this may (or may not) affect the FED’s decision about raising interest rates, it is easy to forget two things. First, the fundamental news releases which too will add their own layer of volatility, and second Greece, which today is back centre stage as the Greek parliament meets today in emergency session to ratify the latest bail out deal.
Key Releases
Today’s key releases are primarily in the US with retail sales, core retail sales and the unemployment claims due. And of these it is the retail sales numbers which the market will be focused on primarily because they may give some guidance as to the FED’s thinking about interest rates.
Meantime in this morning’s trading the USD has been broadly higher against all the major currencies except the British pound, but with the US session due to start shortly, Cable too may simply fall into line.
A quick look at our CSI (currency strength indicator) on the hourly timeframe reveals further strength in the USD (red line) which is also reflected in the 4 hour chart.
Volume Price Analysis Confirmation
Volume price analysis (VPA) supports the upside. Rising prices with increasing volume show conviction. Low volume pullbacks signal weakness in sellers. Quantum currency strength indicator ranks USD high relative to peers.
Trading Implications
Higher USD favors long dollar positions. Watch USD/JPY or short EUR/USD. Pullbacks to support offer entries. Anna Coulling’s VPA approach with Quantum tools helps ride the momentum confidently.
USD strength creates opportunities. Quantum indicators on MT5 or NinjaTrader make spotting and trading the move reliable. Stay aligned with volume for consistent results.
The Currency Characteristics of the USD
The US dollar (USD) is the world’s dominant currency. It’s the primary reserve currency. Central banks hold most reserves in USD. This creates constant demand. Traders call it the “king” of forex. Its characteristics shape global markets.
Reserve Currency and Safe Haven Status
USD is the benchmark for trade and debt. Oil and commodities price in dollars. This forces global USD buying. In risk-off environments (crises, equity drops), USD strengthens. Investors seek safety. It’s a safe-haven alongside JPY and CHF.
Volume price analysis (VPA) confirms this. High volume USD rallies during fear show conviction buying. Quantum currency strength indicator ranks USD high in risk-off.
Fed Policy and Interest Rates
The Federal Reserve drives USD. Rate hikes attract capital—higher yields. Cuts weaken it. Data like NFP or CPI influence expectations. Strong data = hawkish Fed = USD strength.
VPA spots reactions—high volume post-news validates direction.
Risk Sentiment Impact
USD weakens in risk-on (growth optimism). Stocks rise, commodity currencies gain. USD strengthens in risk-off. Quantum matrix shows relational flows—USD strong vs majors in uncertainty.
Practical Trading Insights
USD moves ripple everywhere. Watch for extremes in Quantum strength indicator. VPA confirms—high volume on USD moves shows real intent. Avoid low-volume spikes—often traps.
Anna Coulling’s VPA approach with Quantum tools turns USD characteristics into disciplined trades. Understand its drivers for clearer decisions.
The USD’s reserve and safe-haven role makes it unique. Quantum indicators reveal its strength relationally. Trade with volume confirmation for consistent results.
By Anna Coulling
Creator of Volume Price Analysis