U.S. Dollar Index Analysis (USD Index – DXY) – Latest Trends and Expectations?

Key news on the US dollar on today’s economic agenda:
The interest rate decision announced by the Federal Reserve is expected to be fixed at 3.75%.

Technically, after exiting the crossover range of 97.684 – 98.775 and breaking below, reaching the negative target of 97.059 that we mentioned in our last analysis, the decline continued to target lower levels until it touched and closed below 95.918 yesterday.

Based on these moves so far, here’s what could happen in the upcoming trade:

• Negative scenario:
  Holding around 95.918 may indicate continued supply-side selling control in the short term, we may target lower levels around 94.566 and may see a pullback to retest the 97.059-97.684 levels.
• Casual scene:
  If it breaks above levels around 95.918 – 97.684 again, and fails to hold below 95.918, more sideways action will emerge to express the continued uncertainty and balance between supply and demand forces.
• Positive scenario:
  A move higher, a breakout and another hold above 98.775 could indicate that the demand side is regaining control of the buying and we could see further upside, possibly targeting higher levels around 100 – 100.463.

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