- DXY remains directionless around 103.50 ahead of the FOMC.
- The resumption of increases could lead to a test of the 2022 maximum.
The US Dollar Index (DXY) trades mixed on Wednesday around 103.50 in trading ahead of the ADP report and Fed decision.
The price action on the DXY continues to point to some consolidation before the possible breakout of the current pattern. In that scenario, the next upside barrier lines up at the 19-year high just below the 104.00 high (28 Apr) before the 105.63 high (11 Dec 2002 high).
The index’s current bullish stance remains supported by the 8-month line near 96.80, while the long-term outlook for the dollar looks constructive as long as it is above the 200-day SMA at 95.87.
DXY day chart
Source: Fx Street
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