In our previous analysis, we commented on the lower probability of a new rate hike. Also, we expected a marginal upward move from the DXY in the first days of the week. On the Wednesday trading session, the FOMC decided to keep unchanged the interest rate at 2.50%.
Our short-term Outlook
This Monday 17, we showed for the US Dollar Index (DXY) an ending structure of the bullish sequence.
Once DXY touched the blue box at $97.72, the price started to decline triggered by the FED’s decision. After the volatile session, the Greenback found support at the base-line of the ascending diagonal pattern at $96.79.
Now the US Dollar should consolidate the decline before continue moving lower. If DXY closes below $96.79, sellers should take their profit target between $95.76 and $95.41. The invalidation level of the bearish scenario is at $98.37.