The US Dollar (USD) is trading higher on Wednesday, with the US Dollar Index (DXY) approaching the September high. The market is cautiously optimistic, awaiting the release of the Federal Open Market Committee (FOMC) minutes and economic data.
Key Factors:
- Market Sentiment: Concerns over China’s economic activity and geopolitical risks are weighing on market sentiment.
- Economic Data: The US Economic Optimism Index and Goods Trade Balance data are expected to be released, but are not expected to be major market movers.
- Fed Minutes: The FOMC minutes will provide insights into the Fed’s monetary policy stance and expectations for future rate decisions.
Technical Analysis:
- Upward Trend: The US Dollar is trading in an upward trend, with potential for further gains.
- Resistance Levels: The 103.18 level is a key resistance level, with potential for further upside if it is broken.
- Support Levels: Potential support levels are at 102.03, 100.62, 100.16, and 99.58.
Overall Outlook:
The US Dollar is likely to remain volatile, influenced by market sentiment, economic data, and Federal Reserve policy. Traders should monitor technical indicators for signs of a trend reversal.