Accompanied by a dovish tone from the very last Fed governor, Lael Brainard, the dollar is set to weaken further as it furthers dampens the bet for a September rate hike.
Last night at 1:15 am when Brainard began her speech, the dollar dipped and eventually pulled back, leaving a very long lower shadow that supposes to signal for a reversal. But sentiment for the dollar slowly settles down and the dollar halted its gain and started to fall. Brainard was clearly not in favor for a rate hike this month.
On the M15 chart, there’s a minor falling trend channel and after Brainard’s speech, USDCHF fell into consolidation after a clear minor retracement has been made.
I will be waiting for the price to make its 2nd minor retracement and look to sell in the highlighted region where there are two levels to resist the price.