U.S. Federal Reserve Chairman Jerome Powell's semi-annual testimony on the economy and monetary policy before the Senate Banking Committee on Tuesday will be keenly watched by investors.
If, as we expect, Fed Chair Jerome Powell sticks to his script during the upcoming Congressional testimony, we see no reason for further USD appreciation on the back of his remarks. Given that there is a one-sided risk that rate-hike expectations might move higher following the event, some temporary USD support cannot be ruled out. That said, with a lot of positivity already priced in for the USD, and with Powell likely to warn that an escalation in trade tension poses a risk to the Fed’s baseline outlook, we find it difficult to see any lasting support to the greenback from current levels.
This is how MyFXspot.com trades now:
EUR/USD
Trading strategy: Long
Open: 1.1660
Target: 1.1790
Stop-loss: 1.1660 (raised from 1.1595)
Recommended size: 2.31 mini lots per $10,000 in your account
Short analysis: EUR/USD left a bullish hammer on Friday's candlestick. Traders shrugged off today's solid U.S. retail sales data, which suggests the USD rally may be coming to an end. We raised stop-loss of our long to the entry point.
GBP/USD
Trading strategy: Buy
Open: 1.3240
Target: -
Stop-loss: 1.3170
Recommended size: 2.14 mini lots per $10,000 in your account
Short analysis: Friday hammer and today’s bullish confirmation made us place a bid at 1.3240. The pair is back above short-term moving averages.
USD/JPY
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: USD/JPY registered the biggest one-week rise since September, to close at the end of Friday above the 112.33 Fibo, 76.4% retrace of the 114.73 to 104.56 (November to March) fall. But we do not see many reasons for this momentum to be continued. We stand aside.
USD/CAD
Trading strategy: Sell
Open: 1.3140
Target: -
Stop-loss: 1.3240
Recommended size: 1.97 mini lots per $10,000 in your account
Short analysis: USD/CAD broke below the tight 1.3209-1.3153 range. The pair is also back below 7-day exponential moving average now (1.3144). We prefer short position here.
AUD/USD
Trading strategy: Long
Open: 0.7415
Target: 0.7555
Stop-loss: 0.7345
Recommended size: 2.14 mini lots per $10,000 in your account
Short analysis: Pair climbs back above the 10 & 21-day SMAs and daily RSI is biased up. We remain long.
EUR/GBP
Trading strategy: Long
Open: 0.8820
Target: 0.8910
Stop-loss: 0.8775
Recommended size: 2.51 mini lots per $10,000 in your account
Short analysis: Weekly action moves out sideways within a 0.8810-0.8915 cloud. No new signals for now. 
Trading ideas by MyFXspot.com