This Key Currency is Setting Up for a Major Market Move

When will the Federal Reserve stop raising interest rates? [Jeff Clark's Market Minute]( This Key Currency is Setting Up for a Major Market Move By Imre Gams, analyst, Market Minute When will the Federal Reserve stop raising interest rates? I wish I knew for sure. The latest round of inflationary data makes it hard to predict what the Fed might do next. But I do know that whatever the Fed does next Wednesday, one market will likely move. In fact, one major currency is rapidly approaching a key resistance level. Once the current trend breaks, it’s likely to set up some lucrative opportunities for my Currency Trader subscribers. Let me explain… Recommended Link [Elon Musk’s “ChatGPT” Could Soon Mint New Millionaires]( [image]( Elon Musk made $180 million on PayPal when he revolutionized online payment processing. $47 billion on SpaceX, when he revolutionized space exploration. And $94.2 billion on Tesla, when he revolutionized the auto industry. He’s about to shock the world again with his version of ChatGPT. And you could go along for the ride if you make [this one simple move.]( [Click here.]( -- Last Wednesday saw the U.S. core inflation gauge run hotter than expected. This added to concerns that a still-healthy economy is continuing to put upward pressure on prices. The Fed is expected to hold rates this Wednesday. But it’s much less certain what they may do in November. Especially if further inflation data keeps coming in hot. And apart from the stock market, the currency market is also extremely sensitive to anything inflation related. So today, we’ll take a closer look at the U.S. Dollar Index (DXY)… [(Click here to expand image)]( The dollar index is nearing a key resistance level. And while there might be a bit more upside in the buck to go, my analysis suggests we should be on the lookout for a larger bearish reversal. The red line on the price chart highlights the resistance level. Traders should know that resistance is more of an area on a price chart than a specific price. Sometimes prices will meet a resistance level to the tick and then reverse. But it’s also just as likely that prices will get near that resistance level before you see a major turn. That’s because savvy traders and investors know that if they can see a key level, so can everyone else. So, they want to get out of the market before all the other traders rush for the exits. One other clue that shows DXY is getting closer to a reversal is the Relative Strength Index (RSI) at the bottom of the chart. The RSI has just recently established what’s known as "bearish divergence". Bearish divergence happens when prices continue to make new highs, but the RSI actually starts trending lower. I’ve indicated the bearish divergence with the blue line on the chart. It’s clear that there’s starting to be a fair bit of bearish evidence stacking up against the dollar. Once the rally in DXY is complete, it should set the stage for a significant period of U.S. dollar weakness. This should provide a wealth of trading opportunities over the next year. A clear trend in the dollar is a necessity for good currency trading. So, Currency Trader subscribers should be ready for plenty of new trades. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Now, unfortunately 2023 has been one of the hardest years to trade currencies. That’s because DXY is practically unchanged over the course of the entire year. Where the dollar is trading now is pretty much exactly where it was trading back in January. Regular Market Minute readers know that volatility makes for the best trading. So, if 2024 sees the dollar start to buckle in a major way, then it’s likely that currency traders will outperform everybody else. Happy trading, [Signature] Imre Gams READER MAILBAG Do you intend to take advantage with currency trading? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. IN CASE YOU MISSED IT… [Sell YOUR Stocks… Keep Only ONE (ticker revealed)]( Jeff Clark predicted the crashes of 2008, 2020, & 2022 – helping his readers dodge huge losses. He then helped double his readers’ money 13 TIMES in the last year alone… But after watching his OWN 23-year-old son lose -60% in risky crypto & tech stocks… Jeff is finally coming forward with his biggest WARNING yet. Jeff says: “Sell Your Stocks BEFORE The Stock Shock!” [Click Here to See Jeff’s New Warning.]( P.S. – Jeff refuses to watch his own son lose any more money in risky investments. 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