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The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, rose on Friday. This comes after positive University of Michigan data and the announcement that the Federal Open Market Committee (FOMC) lowered interest rates by 25 basis points on Thursday.The Fed expressed optimism about economic growth but acknowledged easing labor market conditions. Despite the rate reduction, DXY has rebounded and could continue its upward momentum if the data continues coming in strong.
Daily digest market movers: US Dollar rises on Michigan sentiment data, FOMC decision
DXY technical outlook: DXY maintains bullish momentum, resistance at 105.50
The DXY index’s indicators retracted slightly on Thursday but maintained positive momentum by the end of the week. The Relative Strength Index (RSI) stands deep in positive territory, while the Moving Average Convergence Divergence (MACD) prints lower red bars. The DXY has regained support at its 200-day SMA and completed a bullish crossover between the 200-day and 20-day SMAs. This suggests potential for further upward price action despite a recent pullback this week.More By This Author:EUR/CHF Price Forecast: Triangle Pattern Completing, Breakout To Follow EUR/GBP Price Forecast: Finds Support At Bottom Of Range Gold Price Slides To Fresh Daily Low, Further Below $2,700 Amid Notable USD Strength
