In this post, we will review the short-term US Dollar Index situation before the next FOMC Minutes release.
DXY advances for the second consecutive week
The US Dollar Index (DXY) continues to advance, and this week accumulates a 0.29% profit. The Greenback is being traded bullishly during these last two weeks on the expectations of an interest rate cut. Analysts are expecting to see which kind of information the Minutes will issue today, during the American trading session.
The Buck and a potential ending structure
Meanwhile, the 2-hour DXY chart shows us the progress of a possible ending structure that could lead to a marginal bullish movement. We expect a final movement between the area of 97.40 and 97.62. From this zone, the Greenback could complete a connector and continue with a bearish cycle of higher degree. The initial bearish target is placed in June’s lows zone (95.93). The invalidation level for the descending scenario will occur if DXY closes above 98.26.
Remember that the price is not forced to move as our outlook proposes. The chart released corresponds to an Elliott Wave Analysis application.