U.S. Dollar Index Tests Resistance Ahead Of FOMC Minutes
2023.08.16 05:11
US stocks saw some weakness yesterday, but looking at today, the markets could slow down now or even stabilize a bit ahead of later today. In a recent meeting, Powell said that the next policy decisions will depend on the data, so not sure we will get anything new from the minutes today. I assume Industrial Production and housing starts numbers can be important as well, regarding the economic data.
From an Elliott wave perspective, the is still in an uptrend. However, it is in the fifth wave, which can either be finished or reach slightly higher prices if it’s really going to be an ending diagonal here. In both cases, I believe that sooner or later the USD Index will make a deeper correction and trade sideways within the uptrend.
Short-term resistance for DXY is at 103.60, and support on dips and for potential dollar longs is at 101.76.
