US Dollar Into Support Ahead of Fed

i förrgårThe US Dollar Index (DXY) is trading just above key support into the weekly open at 100.61/76- a region defined by the December low and the 2024 low-day close (LDC). Note that the lower parallel of the pitchfork and the objective September opening-range also converge on this threshold and further highlight its technical significance- looking for a reaction off this mark into FOMC with the immediate focus on a breakout of the monthly range.

A break / close below this pivot zone threatens another accelerated bout of losses toward the next major technical consideration at the 2019 high / 2023 low-day close (LDC) at 99.66/95 and the 61.8% retracement of the 2021 advance at 98.97.

Monthly-open resistance stands at 101.73 backed by the January LDC at 102.20- rallies should be limited to this threshold IF price is heading for a break lower. Broader bearish invalidation now lowered to 102.80/95. Keep in mind that we get the release of the updated interest rate dot-plot and economic projections from the Fed on Wednesday- expect increased volatility here. Stay nimble into the releases and watch the weekly close for guidance.

Michael Boutros
MBForex