DXY Outlook (7th June 2023)
The DXY had seen significant volatility, reversing strongly from the 104.70 price level, down to 103.40 (which coincides with the 38.2% Fibonacci retracement level). This is due to the recent speculation over further interest rate hikes to come from the Federal Reserve.
As the likelihood of further interest rate hikes eases, this is likely to bring about some lower volatility, but possible downside on the DXY.
Currently trading below the 104 level and with the 200 MA and the recent swing point of 104.36 providing near term resistance, the DXY is more likely to trade lower from this level.
If the price breaks below 103.85, the DXY is likely to trade down to 103.40, with the next key support level at the 50% Fibonacci retracement level, between the 102.80 and 103 price area.
As the likelihood of further interest rate hikes eases, this is likely to bring about some lower volatility, but possible downside on the DXY.
Currently trading below the 104 level and with the 200 MA and the recent swing point of 104.36 providing near term resistance, the DXY is more likely to trade lower from this level.
If the price breaks below 103.85, the DXY is likely to trade down to 103.40, with the next key support level at the 50% Fibonacci retracement level, between the 102.80 and 103 price area.
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