US Dollar Index Technical Analysis: Does it really matter?
The US Dollar Index (DXY) is heading back above 104.00 on Wednesday ahead of the US Fed rate decision. The strong US Dollar comes as markets start to pare back their euphoria from earlier this year, when three swift rate cuts were expected. Expectations have been tuned down to only two cuts and done. In this context,the dot plot release could see the DXY paring back some earlier gains to look for a balanced middle ground.
On the upside,104.96 remains the first level in sight. Once above there, the peak at 104.97 from February comes into play, ahead of the 105.00 region with 105.12 as the first resistance.
Some support should come in from the 200-day Simple Moving Average (SMA) at 103.70, the 100-day SMA at 103.58, and the 55-day SMA at 103.52. The 103-area, thus, looks well equipped and covered with support levels to catch any retreats in the DXY
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