The US Dollar Index (DXY) is clawing back with traders bracing for the Fed Minutes later this evening. An additional element that is underpinning the DXY is that suddenly rumours on a possible rate hike from the Fed in the coming three months are showing up in the possibilities. This would mean a widening of the rate differential between the US Dollar and other currencies, which would mean the DXY could soar to 106 within three months, should that rate hike materialise.
Should the US Dollar jump to 105.00 on the back of the Fed Minutes, 105.12 is a key level to keep an eye on. One step beyond there comes 105.88, the high of November 2023. Ultimately, 107.20 – the high of 2023 – could even come back into scope, but that would be when several inflation measures are coming in higher than expected for several weeks in a row.
The 100-day Simple Moving Average looks to be getting chopped up again, though the DXY looks to be drawn to it each time it snaps below 104.13 The 200-day SMA near 103.72 looks more solid as a support. Should that give way, look for support from the 55-day SMA near 103.17.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.