- The DXY regains the smile and the region of 92.50 before the FOMC.
- More drops could lead to a test at 92.30.
The U.S. dollar index (DXY) leaves recent weakness and manages to post gains in the 92.50 / 60 region on Wednesday.
There will likely be more range travels around current levels before hearing the Federal Reserve’s decisions later on Wednesday. To the upside, there is resistance at the monthly highs near 93.20 (July 21 high) ahead of the 2021 high around 93.50, while weekly lows in the 92.30 area (July 27 low) should offer provisional support.
Looking at the bigger picture, the positive stance on the DXY is expected to remain unchanged as the index trades above the 200-day SMA today at 91.35.
DXY day chart
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