DXY looks to retake 96.00

FXStreet (Edinburgh) - After testing lows in the 95.80 area, the greenback – in terms of the US Dollar Index – is now looking to regain the 96.00 mark.

DXY focus on FOMC

The greenback continues to extend its negative mood on Wednesday, although the selling pressure seems to have found decent support around the 95.80 area so far. The index is navigating 8-week lows in levels last seen in early March, ahead of the first estimate of the US GDP Annualized during the first quarter and the FOMC meeting.

Prior surveys see the US economy to have expanded 1.0% on a yearly basis, largely as a consequence of harsh winter weather and strikes. Regarding the probable tone of the Committee, consensus seems to be tilted to the hawkish side, expecting the Fed to see the recent economic weakness as temporary.

DXY relevant levels

The index is now retreating 0.16% at 95.93 with the immediate support at 95.82 (low Apr.29) followed by 95.34 (low Mar.4) and then 94.06 (low Feb.26). On the other hand, a surpass of 97.55 (high Apr.24) would open the door to 98.66 (high Mar.31) and finally 99.18 (high Apr.9).

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