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US Dollar Index Price Analysis: Cautious ahead of the FOMC

  • DXY extends the gradual upside although still below 92.00.
  • The next target of note aligns at the YTD peaks around 92.50.

DXY's recovery still remains unable to assault and surpass the key hurdle at the 92.00 neighbourhood.

Extra gains in the dollar stay on the cards, although the FOMC event due later on Wednesday is expected to be key for bulls’ aspirations. If the upside impulse gathers extra steam, then DXY is expected to re-focus on the so far yearly tops in the mid-92.00s ahead of the critical 200-day SMA, today at 92.73.

A break above the latter should shift the outlook to constructive (from bearish) and allow for further gains in the short-term horizon.

DXY daily chart

 

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