DXY Technical Analysis: Steady below 100-hour SMA ahead of FOMC

Haresh Menghani FXStreet

• The index, over the past one week, has been oscillating within a broader trading range, forming a rectangular chart pattern on the 1-hourly chart.

• On the said chart, the index now seemed to find support near a short-term ascending trend-line, albeit the uptick remained capped at 100-hour SMA.

• The subdued/range-bound price action clearly seems to indicate a wait and watch approach ahead of the key event risk - the latest FOMC decision.

• Hence, it would be prudent to wait for a convincing break through the near-term trading range before positioning for the near-term trajectory.

US Dollar Index 1-hourly chart

Spot Rate: 94.14
Daily High: 94.21
Daily Low: 94.08
Trend: Sideways

Resistance
R1: 94.37 (trading range hurdle)
R2: 94.61 (100-day SMA)
R3: 95.00 (psychological mark)

Support
S1: 93.80 (lower end of the trading range)
S2: 93.40 (horizontal zone)
S3: 93.17 (June month swing low)

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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