Overnight, the DXY finally broke out of the previous consolidation to trade significantly lower, down to retest the key support level of 102.
However, upon touching the 102 price level, the DXY rebounded slightly to consolidate along the 102.20 price level.
This move lower was primarily driven due to the market increasing expectations for lower rate hikes or a pause in future rate hikes from the Federal Reserve. In addition, the release of slightly weaker than expected GDP (Actual 2.6% Forecast: 2.7%) provided some additional downside pressure.
While a break of the support level is the likely scenario, the DXY could bounce from this level, similar to the price action on the 23rd of March, given that the market is heading into the weekend, end of the month, and end of the quarter (some profit taking activity might occur).
If the price breaks below 102, the next key support level is at 101.55.
However, upon touching the 102 price level, the DXY rebounded slightly to consolidate along the 102.20 price level.
This move lower was primarily driven due to the market increasing expectations for lower rate hikes or a pause in future rate hikes from the Federal Reserve. In addition, the release of slightly weaker than expected GDP (Actual 2.6% Forecast: 2.7%) provided some additional downside pressure.
While a break of the support level is the likely scenario, the DXY could bounce from this level, similar to the price action on the 23rd of March, given that the market is heading into the weekend, end of the month, and end of the quarter (some profit taking activity might occur).
If the price breaks below 102, the next key support level is at 101.55.
Free trading community: discord.gg/kPDXU2ZaDt
