USDOLLAR Showing Strength Ahead of Fed Release
FXCM’s USDOLLAR index is in the bullish area on the daily chart on the left. The hourly EMAs and stochastic are in mode and potentially align short-term traders with the daily. A movement of stochastic to 80 level and maintenance of that level (blue arrow) increase the chance of a successful trade. Trend following indicators may be useful in this case as a potential exit tool. Stop under hourly support in conjunction with risk management techniques is important. Please note in this instrument is likely to increase tomorrow with the Fed release (6:00 pm GMT ) and during the press conference (6:30 pm GMT ).