DXY Technical & Fundamental Analysis + Weekly Forecast Forecast
The Federal Reserve's September rate decision, which has been discussed for some time, is almost here. The largest issue right now is whether the Fed would provide specifics about tapering asset purchases, since most FOMC members have indicated they anticipate the beginning of such action to begin in the course of this year, as per July's meeting. Powell told us in July that employment has not yet achieved the "significant additional progress" level that the Fed is aiming for before raising rates. After that, there was the appalling NFP data earlier this month, and it seems the Fed may not be prepared to loosen monetary policy at this time. This may result in both USD-weakness and a revival of risk-on moves in global markets.
DXY Technical Analysisย
From a longer-term perspective, the US dollar is expected to trend upward, as described in our Q3 prediction, and price action is close to testing several important watermarks on the chart.
The Q1 high is about 93.43, while the 93.20 swing-high is a little higher.
The next bar up is the 2021 high, which rests at 93.73.