Fed Chair Powell caused dollar to reverse after Congressional testimony, reports Ashraf Laidi.

It was another blatant example of fundamentals rushing to line up with technicals.

Just as the pain suffered by U.S. dollar shorts was escalating on Tuesday, Fed Chair Powell's Wednesday testimony turned the tables. To those trading currencies, this is not the first time the U.S. dollar stood at multi-month highs or cycle highs — such as Tuesday— only to be whipsawed 24 hours later by a Fed-related event. This is also frequent in the case of the euro and the European Central Bank, when the currency pushes near extremes ahead of a key event. U.S. Consumer Price Index (CPI) up next. List of today's Fed speakers with times (see below).

Charts Held up by Powell's Fundamentals - Gold Spx Jul 11 2019 (Chart 1)

Powell's main objective is not to talk down the U.S. dollar. Rather, he simply reminded markets of what might have been lost on them— that rate cuts are coming, even as the nonfarm payroll part of the Friday's U.S. Employment Situation Report clouded traders' judgments (or erased their memory of the clearly dovish twist at the last FOMC meeting). 

What does it all mean to traders? Two hours prior to Powell's testimony, I issued a special video for subscribers highlighting the stress points in FX and focusing on the importance of technical levels in forex and metal markets. As we speak, EURUSD is testing 1.1280 ahead of U.S. CPI, while GBPUSD leads near 1.2570s. Tune in for the second day of Powell's testimony (to the Senate). 

Here's the list and times of today Fed speakers: (all times are EDT)

Williams 11:10 EDT Bostic 12:15 EDT Barkin 12:30 Quarles 1:30 Williams 3:30 EDT. Kashkari 5:00.

You can see Ashraf’s daily analysis at www.AshrafLaidi.com and sign up for the Premium Insights.

Ashraf Laidi recently talked about the Dollar, gold and the Chinese yuan Triangularity at TradersEXPO New York.