US Dollar DXY Index struggles to find direction below 94.00

• The DXY index is moving inconclusively below the 94.00 level.
• US bond yields were on the defensive Tuesday.
• The IBD / TIPP index and the API report stand out on today’s calendar.

The US dollar DXY index, which measures the strength of the dollar against a basket of major currencies, reverses the negative start of the month and returns to the region of 93.90 on Tuesday.

Cautious DXY Index Before FOMC

DXY index moves slightly in positive territory Tuesday amid declining US yields and the general lack of direction in risk appetite trends.

In fact, the US bond markets see how Yields in the short and middle part of the curve extend the recent decline to the region of 0.48% and the area of ​​1.55%, respectively, while the long term adds to recent gains and it is close to 1.97%.

Meanwhile, the dollar is expected to move with Increasing caution ahead of Wednesday’s key FOMC event. In fact, the Committee is expected to announce the start of the phase-down process of its bond purchase program as early as November and at a likely rate of $ 15 billion per month.

Later in the day, when it comes to US data, the IBD / TIPP Economic Optimism Index and the weekly API report on US crude supplies will be released today.

Relevant levels of the US dollar DXY index

At the time of writing, the DXY index is gaining 0.05% on the day, trading at 93.92. A break above 94.30 (October 29 high) would open the door to 94.56 (October 12 high) and then 94.74 (September 2020 high). On the other hand, the next support is at 93.27 (October 28 low), followed by 92.98 (September 23 low) and finally 92.93 (100-day SMA).