The US FOMC decision to hike rates by 25bps, taking the US interest rates to 5% saw the DXY spike downward from the 103 price area down to the 102 round number support level.
This was partly due to the decision being priced in and also the likelihood that markets were considering the possibility of a slowdown of rate hikes from the FOMC due to the banking crisis.
However, the DXY failed to break below the 102 level and has since bounced to retest 102.65 which aligns with the 61.8% Fibonacci retracement level.
With the current price action, if the price remains below 102.70, it is likely that the DXY could continue with the downward trend, trading lower to retest the immediate support and round number level of 102.
This was partly due to the decision being priced in and also the likelihood that markets were considering the possibility of a slowdown of rate hikes from the FOMC due to the banking crisis.
However, the DXY failed to break below the 102 level and has since bounced to retest 102.65 which aligns with the 61.8% Fibonacci retracement level.
With the current price action, if the price remains below 102.70, it is likely that the DXY could continue with the downward trend, trading lower to retest the immediate support and round number level of 102.
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