Overnight, the DXY broke below the 106.70 price level to trade significantly lower toward the key support area of 105.60.
This move lower followed the current downtrend but was intensified following the release of the FOMC meeting minutes.
The meeting minutes indicated that the current monetary policy is ‘approaching a sufficiently restrictive level”.
This signaled the possibility that the Federal Reserve could slow down on the scale of further rate increases.
However, uncertainty was also cast on the “ultimate level of Fed funds rate required to contain inflation”.
Therefore, look for the DXY to continue falling lower, toward the key support area of 104.65.
Watch out for choppy price action as the US market is closed for thanksgiving today.
This move lower followed the current downtrend but was intensified following the release of the FOMC meeting minutes.
The meeting minutes indicated that the current monetary policy is ‘approaching a sufficiently restrictive level”.
This signaled the possibility that the Federal Reserve could slow down on the scale of further rate increases.
However, uncertainty was also cast on the “ultimate level of Fed funds rate required to contain inflation”.
Therefore, look for the DXY to continue falling lower, toward the key support area of 104.65.
Watch out for choppy price action as the US market is closed for thanksgiving today.