The US Dollar Index (DXY) has nearly erased its pre-FOMC losses, but can dollar bulls hold on this week?
Get the DXY key levels I’m watching and potential targets in today’s video, including brief updates on EURUSD and GBPUSD.
The DXY is bouncing back today after an aggressive selloff ahead of Wednesday’s FOMC.
Wednesday’s US CPI showed some cooling, which sent the dollar index significantly lower ahead of the Fed rate decision and press conference.
However, as mentioned in yesterday’s video, any significant moves ahead of FOMC should be taken with a grain of salt, and today’s rally is a perfect example.
As for the DXY, the key during Wednesday’s session was to see the index close the day above channel support at 104.70/80.
Although Wednesday’s candle closed at 104.68, that was enough to keep me cautiously bullish on the dollar.
The big test for dollar bulls now…
