USD Index Rebounds Post-FOMC: Technical Levels, News, Outlook
The US Dollar Index (DXY) has experienced heightened volatility in the past week, with a sharp decline ahead of the recent FOMC meeting swiftly followed by a robust rebound. This rebound was fueled by shifting rate cut expectations and unexpectedly strong US economic data. Technical resistance is evident near the 200-period moving average, with DXY momentum pausing as markets assess the outlook for Federal Reserve policy.
Latest News
-FOMC meeting prompted volatility and a brief dip to new 2025 lows.-Fed Chair Powell gave no clear signals on a rate cut, shifting expectations.-US August new home sales surprised to the upside, boosting DXY sentiment.-German business confidence declined, pressuring EUR/USD and supporting DXY.
Market Trend
-DXY rebounded sharply after a pre-FOMC selloff.-Buying momentum stalled at resistance near the 200-period moving average.-Support is holding above the 2025 lows (96.50–97.00 range).-Short-term trend turning neutral as traders await Fed direction.
Indicators
-DXY is hovering near the 200-period moving average.-Support: 97.25–97.60 (pivot), 96.50–97.00 (major support).-Resistance: 97.90 (immediate), 98.00–98.50 (next key level).-Double bottom pattern observed, suggesting possible base formation.
Reference
-Hold/Neutral bias until DXY breaks decisively above or below the 200-period MA.-Consider buying only on a sustained close above 98.00 with volume.-Consider selling if DXY closes below the 97.25 pivot.
