DXY: US Dollar Index sub-90 amid Fed press conference
- DXY is now trading below the 90 mark.
- The market´s reaction is fairly moderated without any dramatic spikes.
DXY went below the 90 mark after Fed's disappointing announcement. The US Central Bank rose its key rate benchmark by 25bps as expected, but the dot-plot suggests only three rate hikes for this year, against the four anticipated. Furthermore, the economic outlook for this year was left unchanged, with modest growth revisions for the upcoming years.
Now live is the Jerome Powell press conference and the Q&A, but there's little he can say to change the fact that most members believe in just two more rate hikes ahead.
DXY daily chart:
The US Dollar Index is now on the edge of a cliff if bears manage to close below 89.78 previous swing low. If the bears gain traction they can hope to target 89.00 figure and 88.25 cyclical low.
DXY 5-minute chart:
After the rate announcement, the DXY tested the daily pivot, only to find sellers. The DXY is now en route to S2 pivot at 89.65. Resistance is seen at the 90.00 mark and at 90.20 which is the high of the day. The market is selling the USD but the reaction is very moderated and not especially big.
Author
Flavio Tosti
Independent Analyst
