FOMC Supports the Dollar!
The US Dollar Index (DXY) opened today's trading with a continued strengthening trend, in line with market expectations regarding the Federal Reserve's (The Fed) interest rate policy and stable domestic economic conditions. The dollar's strengthening is supported by fundamentals suggesting that interest rate cuts are unlikely to be implemented quickly, maintaining the attractiveness of USD-based instruments for global investors.
Recent US economic data has shown a resilient labor market and relatively controlled inflation, minimizing pressure for aggressive interest rate cuts. Furthermore, a shift in capital flows to the US and expectations of competitive yields compared to other major currencies have contributed to the strengthening of the dollar index. However, the market remains vigilant about external risks, including global trade uncertainty and geopolitical dynamics, which could potentially impact the dollar's movement.
Technically, the DXY is showing bullish signals, with indicators such as the Moving Average, RSI, and MACD supporting the uptrend. The daily resistance level is estimated at around 100.54–100.58, while support is around 99.50–100.00.
The RSI indicator is showing "overbought" conditions in the short term, indicating potential for a correction or pullback. However, the medium-term trend remains positive as long as key support levels below 100.00 hold. Technical analysts advise traders to pay attention to support levels for entry points and not to be too aggressive in entering new positions without confirmation of market movement.
Source: Newsmaker.id
