USD Index Price Analysis: A challenge of 100.00 looms closer
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- The index remains well under pressure following the FOMC meeting.
- There is interim support near 100.80 so far, or 10-month lows.
DXY comes under extra selling pressure in the wake of the Fed’s decision on rates and retests the 100.80 region, or multi-month lows on Thursday.
In the near term, further losses appear in the pipeline while below the 3-month resistance line near 102.45. If the index manages to clear this region it could accelerate gains to the provisional 55-day SMA, today at 104.02.
Below this line, the dollar is expected to keep the short-term bearish bias unchanged and with the immediate target at the psychological 100.00 support.
In the longer run, while below the 200-day SMA at 106.45, the outlook for the index remains negative.
DXY daily chart
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