US Dollar cautious near 94.00 ahead of FOMC

Pablo Piovano FXStreet

The US Dollar Index – which tracks the buck vs. a basket of its main rivals – is extending the recovery to the vicinity of the 94.00 handle ahead of the European opening.

US Dollar focus on FOMC

The index is posting its third consecutive advance for the time being, looking to regain the key 94.00 barrier after recording fresh YTD lows on Tuesday in the 93.50/45 band.

Despite the increasing uncertainty in the US political scenario and the effervescence around the Trump-Russia scandal, the index managed to regain some buying interest, although it remains well anchored in the bearish territory so far.

Having lost already nearly 10% from January’s 15-year highs around 103.80, DXY seems to have found some support in the mid-93.00s amidst increasing cautiousness in light of the imminent FOMC meeting. Prior surveys see no changes to the monetary conditions today, although fresh remarks on inflation are also a possibility.

Other than the FOMC gathering, June’s new home sales and the DoE’s report on US crude oil supplies are also in the docket.

US Dollar relevant levels

The index is up 0.07% at 93.99 with the immediate hurdle at 94.38 (10-day sma) seconded by 94.98 (high Jul.20) and then 95.07 (21-day sma). On the other hand, a break below 93.46 (2017 low Jul.25) would open the door to 93.41 (low Jun.8 2016) and finally 93.03 (low Jun.23 2016).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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