The U.S. Dollar Index (DXY) remains in bullish territory, with buyers maintaining control as investors eagerly await the release of U.S. interest rate data.
Context
The focus is squarely on the Federal Reserve (FED), and markets are hanging on any hints regarding the future of interest rates. While no rate changes are expected, analysts are alert for any signals indicating a slowdown in rate hikes.
Inflation Reports
Last week's stronger-than-expected inflation reports have led market participants to revise their expectations for rate cuts this year. Traders now estimate that monetary easing will be around 75 basis points over the course of the year.
Key Levels
At the time of writing, the DXY is trading at 104.08 points, marking the ninth consecutive daily gain since its March 8 low at 102.32. Key technical levels include:
1. Next Resistance (104.77): This level corresponds to the triangle pattern's upper boundary on the daily chart. A breakout above this level could open the door to further gains.
2. 38.2% Fibonacci Resistance (105.07): If the DXY manages to surpass this mark, it could strengthen its bullish position.
3. 50% Fibonacci Support (102): This level acts as a floor for DXY's price and could be crucial in case of corrections.
Note: The information provided in this article is for informational purposes only and does not constitute financial advice. Always consult a professional before making investment decisions.*
Context
The focus is squarely on the Federal Reserve (FED), and markets are hanging on any hints regarding the future of interest rates. While no rate changes are expected, analysts are alert for any signals indicating a slowdown in rate hikes.
Inflation Reports
Last week's stronger-than-expected inflation reports have led market participants to revise their expectations for rate cuts this year. Traders now estimate that monetary easing will be around 75 basis points over the course of the year.
Key Levels
At the time of writing, the DXY is trading at 104.08 points, marking the ninth consecutive daily gain since its March 8 low at 102.32. Key technical levels include:
1. Next Resistance (104.77): This level corresponds to the triangle pattern's upper boundary on the daily chart. A breakout above this level could open the door to further gains.
2. 38.2% Fibonacci Resistance (105.07): If the DXY manages to surpass this mark, it could strengthen its bullish position.
3. 50% Fibonacci Support (102): This level acts as a floor for DXY's price and could be crucial in case of corrections.
Note: The information provided in this article is for informational purposes only and does not constitute financial advice. Always consult a professional before making investment decisions.*