In the most recent meeting, the US Federal Reserve hiked rates by 25 basis points, as anticipated, to take interest rates in the US to 5.25%, slightly beyond the terminal rate of 5.1%. However, the US Dollar Index (DXY) fell to the key support level of 100.80 which was last reached in April and February 2023, following the release of the rate hike decision. The DXY trading lower was driven primarily due to comments from Chair Powell where he indicated that the Federal Reserve was “closer to the end than the beginning” and that it “felt like they are close, or even there”.
This signaled to the market that the Federal Reserve could pause on future rate hikes, leading to the weakness seen on the DXY. In the lead-up to the Federal Reserve rate decision, the upside on the DXY was limited by the round number resistance area of 102 and the 200-period moving average (200 MA). With the DXY approaching the key support level of 100.80 and the relative strength index (RSI) heading down toward the oversold region, watch out for the development of price action along the support level.
If the DXY continues to trade lower the next key support level is at 100 which was last tested in April 2022.
By
JinDao Tai
本文由 GO Markets 的分析師及撰稿人撰寫，內容基於其獨立分析或個人經驗。文中所表達的觀點、意見或交易風格均屬作者個人，並不代表或反映 GO Markets 的立場。任何提供的建議均屬一般性，並未考慮您的個人目標、財務狀況或需求。在採取任何行動之前，請考慮該建議是否適合您的目標、財務狀況與需求。若該建議涉及購買特定金融產品，請於作出任何決定前，先閱讀我們網站上提供的《產品揭露聲明書》（Disclosure Statement, DS）及其他法律文件。
