Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
US Dollar Digs into Support as Focus Shifts Towards Jackson Hole

US Dollar Digs into Support as Focus Shifts Towards Jackson Hole

James Stanley, Senior Strategist

US Dollar Talking Points:

  • The US Dollar is digging into support today, attempting to arrest the three-day sell-off.
  • While USD was bid through the first half of last week, the past three trading days have seen much of that move erased as expectations build for Powell to avoid the topic of taper at his upcoming appearance at Jackson Hole.
  • The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.
USD Forecast
USD Forecast
Recommended by James Stanley
Access the Q3 Forecast for the US Dollar
Get My Guide

The US Dollar is holding on to support at a familiar spot on the chart, taken from the 92.80-92.90 zone in DXY. This is a spot of previously unfilled gap from early Q2 trade that came back into the equation as short-term resistance-turned-support.

Last week saw USD strength flare up to a fresh 2021 high. This was rooted in the release of FOMC meeting minutes from the July rate decision, in which most participants saw the start of taper by the end of 2021; and that led to a consistent run of USD strength that eventually brought upon fresh nine-month-highs.

But that strength didn’t last for long; prices began to turn on Friday and that lasted through this week’s open. This gives the appearance that markets are now discounting the chance that Powell touches on taper at the upcoming Jackson Hole Economic Symposium and, instead, looks to next week’s Non-farm Payrolls data which would be the last such release before the September FOMC rate decision. And that September meeting should be interesting as it’s a quarterly meeting, and the Fed will release updated projections and forecasts that may provide clue to their expected timing.

To learn more about the Fed or Non-farm Payrolls, check out DailyFX Education

US Dollar Four-Hour Price Chart

US Dollar Four Hour Price Chart

Chart prepared by James Stanley; USD, DXY on Tradingview

--- Written by James Stanley, Senior Strategist for

Contact and follow James on Twitter: @JStanleyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.