Although the Fed is not expected to raise interest rates tomorrow, the USD has rocked up and it seems that the latest short-seller defense line has already been reached. The Dollar Index managed to reach the last strong horizon, which coincided with 200SMA and 23.6% Fibonacci correction of the downward trend. We still have no breakthrough.
What are the options for the USD?
It all depends on which way the FED will take. If the US central bank reaffirmed its intentions for 4 interest rises in 2018. USD will receive the required upward breakdown support and we will probably see a change in the main trend to a rising one. How far is that possible? After inflation in the country passed 2%, and companies made record profits, the likelihood stood at 100%. It is unlikely, but it is not impossible for the Fed to take a more conservative turn. If we witness such a move, the bulls are unlikely to be able to bring the dollar price above the key levels.
Source: Bloomberg Pro Terminal
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