The U.S. dollar after a consistent decline since the FOMC Policy is now witnessing some mild bullishness to post a rebound following a long stretch of declines. The Fed meeting minutes released lately shows that officials factored in the tax cuts. While tax cuts were one of the factors that led the central bank to hike interest rates in December. Inflation, however, is expected to remain below the Fed's target for longer.
Higher timeframe charts are clearly highlighting that the Dollar Index has been fighting a tough battle in holding off the supports. At the moment the support level is being cautiously held as overall sentiment remains muted on the Dollar. price break and close below 91 develops. We continue to maintain that situation could improve only when the DX starts moving above 93.50 till then it’s a tough call for the basket. The negative DI is seen inching higher while the prices are seen stalling. DX is seen under pressure and is now coiling once again towards a trended scenario once again and this could now translate into some rangebound action for the next few days.
Higher timeframe charts are clearly highlighting that the Dollar Index has been fighting a tough battle in holding off the supports. At the moment the support level is being cautiously held as overall sentiment remains muted on the Dollar. price break and close below 91 develops. We continue to maintain that situation could improve only when the DX starts moving above 93.50 till then it’s a tough call for the basket. The negative DI is seen inching higher while the prices are seen stalling. DX is seen under pressure and is now coiling once again towards a trended scenario once again and this could now translate into some rangebound action for the next few days.