CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.09% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

76.09% of retail investor accounts lose money when trading CFDs with this provider.

USDX Breakdown Ahead of The FOMC | Indices

Published: 20.09.2023
by Joseph Jeffriess

Today’s focus: USD Index

Pattern – Nill
Support – 105.00 – 104.45
Resistance – 105.10 – 105.55

Thanks for checking out today’s update. Today, we look at the progress of the USD Index, breaking down the overall price picture, levels, and patterns and incorporating moving average and RSI into the analysis.

The USD Index sits in an interesting spot with the FOMC to come. The price still sits in its uptrend, and we saw a nice fightback yesterday from buyers after sellers were once again rejected below 105. The price also looks to be losing some upward momentum, and the RSI is also warning us of this, with divergence forming on the RSI.

A lot could come down to the FOMC. If we see a hawkish tone, could we see a new move by buyers to test the 105.55 resistance? On the other hand, if it is more to the doveish side, the momentum warnings could come true, and we may see a new test lower by sellers.

Sorry that today’s update is a touch this way or that way, but it looks like the market is waiting for some direction in the short term.

The fund’s rate, projections and statement are due at 4:00 a.m. AEST Thursday morning.

Have a great day and good trading.

* The information provided on this page are the opinions of the author and do not necessarily reflect the opinions of Eightcap and are not endorsed by Eightcap.

Any person acting on the information presented on this page does so entirely at their own risk. No representation or warranty is given as to the accuracy or completeness of this information. Any research provided does not have regard to any specific investment objectives, financial situation and needs of any specific person who may receive it.

Margin trading involves a high level of risk and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Eightcap, and seek independent advice if necessary.