• DXY struggles to extend latest gains after rising the most in three weeks.
  • Fed matched market consensus of flagging faster rate hikes but Powell’s cautious optimism probes bulls afterward.
  • Fears emanating from Russia, virus woes and Sino-American tensions join hawkish Fed to keep greenback buyers hopeful.
  • US Q4 Advance GDP, Durable Goods Orders for December will offer more details for bulls.

US Dollar Index (DXY) seesaws around the monthly high of 96.53, recently easing to 96.50 during Thursday’s Asian session.

The greenback gauge justified hawkish Fed comments as it rose the most since January 03 the previous day. In doing so, the quote crossed a short-term key trend line resistance and refreshed the monthly peak.

The US Federal Reserve (Fed) matched wide market expectations to keep benchmark interest rates and tapering targets intact during Wednesday’s Federal Open Market Committee (FOMC) meeting. However, the interesting part from the Monetary Policy Statement was, “The Committee expects it will soon be appropriate to raise the target range for the federal funds rate.”

Fed Chairman Jerome Powell also spoke in sync with the hawkish signals from the US central bank while saying, “There’s plenty of room to raise rates.” Though, his comments like, “The rate-hike path would depend on incoming data and noted that it is ‘impossible’ to predict,” seemed to have probed the greenback bulls afterward.

Adding to the market fears and stopping the US Dollar Index is the warning from the US State Department, “If Russia invades Ukraine one way or another, Nord Stream 2 will not move forward,” per Reuters. On the same line are the recently escalating tensions between the US and China over trade and Taiwan issues. Furthermore, worsening virus conditions in Asia also seem to stop the US Treasury yields from rising further of late.

That said, the Wall Street benchmarks and commodities remained on the back foot, except for oil, following the Fed’s verdict whereas the US 10-year Treasury yields rose the most in three weeks, up eight basis points (bps) to 1.87% by the end of Wednesday’s North American session. It should be observed that the US T-bond yields ease to 1.84% while the S&P 500 Futures print mild gains by the press time.

Although the risk catalysts like Ukraine-Russia tussles and Sino-American tensions, not to forget virus woes, may play a notable role to direct short-term USD/JPY moves, major attention will be given to the first readings of the US Q4 GDP and Durable Goods Orders for December for fresh impulse.

Read: US GDP Preview: Inflation component could steal the show, boost dollar, already buoyed by Russia

Technical analysis

A clear upside break of a two-month-long resistance line, now support around 96.28, favor US Dollar Index bulls to aim for the 2021 peak near the 97.00 threshold.

Additional important levels

Today last price 96.49
Today Daily Change 0.00
Today Daily Change % 0.00%
Today daily open 96.49
Daily SMA20 95.76
Daily SMA50 96.04
Daily SMA100 94.97
Daily SMA200 93.32
Previous Daily High 96.54
Previous Daily Low 95.91
Previous Weekly High 95.86
Previous Weekly Low 95.04
Previous Monthly High 96.92
Previous Monthly Low 95.57
Daily Fibonacci 38.2% 96.3
Daily Fibonacci 61.8% 96.15
Daily Pivot Point S1 96.09
Daily Pivot Point S2 95.69
Daily Pivot Point S3 95.46
Daily Pivot Point R1 96.71
Daily Pivot Point R2 96.94
Daily Pivot Point R3 97.34



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

AUD/USD buyers attack 0.7100 amid sluggish Asian session, second-tier Aussie data eyed

AUD/USD buyers attack 0.7100 amid sluggish Asian session, second-tier Aussie data eyed

AUD/USD grinds higher after bouncing off 21-DMA, eyes to snap two-day downtrend. The pair picks up bids to refresh intraday high around 0.7100, extending the previous day’s rebound from 0.7035, amid broad US dollar weakness. RBA’s Ellis hints at more rate rises, FOMC Minutes raised doubts on rate lifts post-September.


EUR/USD eyes to regain 1.0700 post-Fed Minutes, US GDP in focus

EUR/USD eyes to regain 1.0700 post-Fed Minutes, US GDP in focus

EUR/USD stays on the way to reverse the pullback from a monthly high, picking up bids to 1.0685 during early Thursday morning in Asia. Second reading of Q1 2022 US GDP, Jobless Claims and housing data to decorate calendar amid multiple holidays in Europe.


Gold defends bounce off weekly support near $1,850 ahead of US GDP

Gold defends bounce off weekly support near $1,850 ahead of US GDP

Gold  treads water around $1,855, defending the previous day’s corrective pullback from a one-week-old support line during Thursday’s Asian session as sluggish markets and a lack of major data/events seem to restrict the metal’s immediate moves.

Gold News

What needs to happen for Axie Infinity price to recover

What needs to happen for Axie Infinity price to recover

Axie Infinity price displays reasons to believe in further momentum to the upside. Traders should approach the digital asset with relative caution, looking for one more fake-out before the rally occurs. Axie Infinity price appears to be unfolding as an extended impulse wave down.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!