- FOMC Minutes and US CPI data weigh on the dollar.
- Dollar bears are in the market looking for a break of temporary support.
- Bulls are looking for commitments for a correction from support.
At 101,469, the DXY is coming under pressure on Wednesday after the March Consumer Price Index (CPI) rose at a slower-than-expected pace and the minutes of the March 21-22 FOMC meeting where the rate hike was widely viewed as moderate. The DXY has fallen from a high of 102.15 to a low of 101.449 so far this day.
The FOMC Minutes showed that the Committee staff expects a mild recession by the end of 2023, but also noted that wage growth remains well above inflation-target compatible rates of 2%.
USD Technical Analysis Daily Chart
The bias is to the downside, while the index is ahead of the downtrend and taking into account the strong daily bearish momentum from the 78.6% Fibonacci retracement level.
H1 chart
However, there are prospects for a correction on the lower time frames from the support zone as illustrated above.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
